The volume of output at which both the locations have the


Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $780.000 per year and variable costs of $15,000 per standard unit produced. McKinney would have annual fixed costs of $940,000 and variable costs of $14,000 per standard unit. The finished items sell for $28,000 each.

a) The volume of output at which both the locations have the same profit = standard units (round your response to the nearest whole number).

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