Assignment:
[Cost-Volume Analysis] A small producer of music boxes wants to move to a larger facility. Two alternative facilities have been found. Site 1 lies a fixed cost of $500,000 per year, with a variable cost of $25 per unit. Site 2 has a fixed cost of $800,000 per year, but a variable cost of $22 per unit.
- Write out the equation for total cost for each site.
- At what volume of output would the two locations have the same total cost?
- For what range of output would Site 1 be superior?
- For what range of output would Site 2 be superior?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.