The operations manager has narrowed down the search for a new plant to three locations.Fixed and variable costs follow. Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range. a.What is the break-even quantity between A and B?
b.What is the break-even quantity between B and C?

Question

The operations manager has narrowed down the search for a new plant to three locations.Fixed and variable costs follow.  Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range.  a.What is the break-even quantity between A and B?
b.What is the break-even quantity between B and C?

Quizplus · Accepted Answer

The Answer of The operations manager has narrowed down the search for a new plant to three locations.Fixed and variable costs follow.  Plot the total cost curves in the chart provided and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range.  a.What is the break-even quantity between A and B?
b.What is the break-even quantity between B and C?

The Operations Manager Has Narrowed Down the Search for a New