Compute volume of output-both the locations


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Q: Hugh Leach Corp., a producer of machine? tools, wants to move to a larger site. Two alternative locations have been identified: BonhamBonham and McKinneyMcKinney.

Bonham Bonham would have fixed costs of $820,000 per year and variable costs of $13,000 per standard unit produced.

McKinneyMcKinney would have annual fixed costs of $940,000 and variable costs of $12,000 per standard unit. The finished items sell for $30,000 each.

a.) The volume of output at which both the locations have the same profit = nothing standard units?

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Operation Management: Compute volume of output-both the locations
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