1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andrew-mc [135]
3 years ago
14

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl

e costs as follows: Location FC (annual) VC (per unit) Atlanta $ 80,000 $ 20 Phoenix $ 140,000 $ 16 If the annual demand will be 20,000 units, what would be the cost advantage of the better location? HINT: Compare the total costs Select one: a. 40000 b. 20000 c. 460000 d. 60000
Business
1 answer:
o-na [289]3 years ago
4 0

Answer:

Cost Advantage of different locations:

b. $20,000

Phoenix certainly had a cost advantage over Atlanta and based on this factor, it should be chosen for the new plant instead of any other city.

Explanation:

a) Total Costs of different locations:

                        Atlanta       Phoenix

Fixed Cost      $80,000     $140,000

Variable cost  400,000      320,000

Total Costs  $480,000    $460,000

b) Variable costs

                                   Atlanta       Phoenix

Annual Demand        20,000        20,000

Variable cost/unit        $20              $16

Total variable cost  $400,000  $320,000

c) Cost Advantage is the competitive edge which location (or company) can have over another through reduced production or marketing costs or both so that it can offer cheaper prices or use excess profits to bolster promotion or distribution.   In this case, the comparison is on the total cost, which is made of variable and fixed costs.

You might be interested in
The major parts of the Stockholders' Equity section of the balance sheet are
torisob [31]

The correct answer is choice D.

The Stockholders’ Equity section of the balance sheet includes stock, paid-iin capital and retained earnings.

5 0
3 years ago
The blueprint of a design is shown to the client at what point in the process
Deffense [45]

Explanation:

Doing this for free brainly plus

8 0
2 years ago
Companies that have become successful with a limited standard product offering often fall into the trap of subsequently broadeni
DiKsa [7]

Answer:

True

Explanation:

When a company successfully offers a product or few products to customers, it tends to expand the range of products it has to offer.

For a <u>company to increase its range of products successfully, it has to realize that it must make corresponding changes to its processes to accommodate the addition of new products.</u>

However <em>oftentimes, companies do not make the necessary changes to their process strategy when expanding their product offerings.</em>

8 0
3 years ago
If a speech consists of a story or series of short stories, which pattern of organization is the speaker using
Liono4ka [1.6K]
The pattern that is being referred to above is called the NARRATIVE PATTERN. If a speech contains a story or a series of short stories in it, and only includes a vivid imagery, the setting, plot and characters, then this would fall in the narrative pattern. Narrative means to narrate or to tell something according to the other of when it happened.
6 0
3 years ago
Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,050. The first bond is issued at a deep di
I am Lyosha [343]

Answer:

Explanation:

a)

The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.

b)

If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

c)

Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant

3 0
3 years ago
Other questions:
  • E&amp;J Auto Body Shop estimated overhead cost for the coming year will be $15,000 and 5,000 direct labor hours will be worked.
    7·1 answer
  • Clean N Green is a two-year-old company that makes wind turbines. The business owner, Janelle, is struggling to compete. Finding
    11·1 answer
  • Dusty would like to buy a new car in six years. He currently has $13,500 saved. He’s considering buying a car for around $17,500
    15·1 answer
  • True or false. Convertible preferred stock may be exchanged, at the corporation's option, for a specified number of shares of co
    13·2 answers
  • A researcher would like to study the average amount of debt owed by retired people in the United States. What could be an exampl
    6·1 answer
  • Kevin fidgets and taps on things, sighs often, squirms, constantly checks the time, and yells at people when they ask him how a
    11·1 answer
  • Cameron is choosing a car insurance plan. Based on his driving history and traffic where he lives, Cameron estimates that there
    6·1 answer
  • Four years ago, a popular sandwich company used to sell 12-inch roast beef subs for only $5.49, but the same product now sells a
    14·1 answer
  • 3. Which type of bank card immediately deducts payment for purchases from the cardholder's
    9·2 answers
  • The sales returns and sales allowances accounts are classified as
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!