Excel Products is planning a new warehouse to serve the Southeast.Locations A,B,and C are under consideration.Fixed and variable costs follow. Which of the following statements is best?
A)Location A is the best one if volumes are quite high.
B)Location B is best over all volume levels.
C)The total cost of location A,if the volume is 250,000 units,is over $8,000,000.
D)The break-even quantity between A and B is more than 75,000 units but fewer than 200,000 units.

Question

Excel Products is planning a new warehouse to serve the Southeast.Locations A,B,and C are under consideration.Fixed and variable costs follow.  Which of the following statements is best?
A)Location A is the best one if volumes are quite high. 
B)Location B is best over all volume levels. 
C)The total cost of location A,if the volume is 250,000 units,is over $8,000,000. 
D)The break-even quantity between A and B is more than 75,000 units but fewer than 200,000 units.

Quizplus · Accepted Answer

Based on the given information, location B has the lowest total cost at all volume levels. Therefore, it is the best choice for Excel Products to build their new warehouse.

Excel Products Is Planning a New Warehouse to Serve the Southeast.Locations