The following facility location technique uses fixed and variable costs to analyze potential locations:
A) Break-even model
B) Business cluster analysis model
C) Weighted-factor rating model
D) Mean absolute deviation model

Question

Quizplus · Accepted Answer

The break-even model uses fixed and variable costs to calculate the point at which total revenue equals total costs. This can help determine the minimum volume of production necessary to cover costs and can be used to compare potential facility locations based on their respective costs.

The Following Facility Location Technique Uses Fixed and Variable Costs