The volume of output at which both the locations have the


Hugh Leach Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and Mckinney. Bonman would have fixed cost of $800,000 per year and variable cost of $14,000 per standard unit produced. Mckinney would have annual cost of $920,000 and variable cost of $13,000 per standard unit. The finished items sell for $29,000 each.

a) The volume of output at which both the locations have the same profit = _____ Standard units

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Operation Management: The volume of output at which both the locations have the
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