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 below,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 below,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 below,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