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FIXED COST PER YEAR VARIABLE COST PER UNIT SITE Atlanta $125,000 $6 Burlington 75,000 Cleveland 100,000 4 Denver 50,000 12 5.

FIXED COST PER YEAR VARIABLE COST PER UNIT SITE Atlanta $125,000 $6 Burlington 75,000 Cleveland 100,000 4 Denver 50,000 12 5.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown here:                                                                                                                                                            a) Graph the total-cost lines for the four potential sites.
b) Over what range of annual volume is each location the preferable one (that with lowest expected cost)?
c) If expected volume of the ski equipment is 5,000 units, which location would you recommend?
FIXED COST PER YEAR VARIABLE COST PER UNIT SITE Atlanta $125,000 $6 Burlington 75,000 Cleveland 100,000 4 Denver 50,000 12 5.
Transcribed Image Text:FIXED COST PER YEAR VARIABLE COST PER UNIT SITE Atlanta $125,000 $6 Burlington 75,000 Cleveland 100,000 4 Denver 50,000 12 5.
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