Ang company that produces pleasure boats has decided to expand one of its lines.
ID: 1194492 • Letter: A
Question
Ang company that produces pleasure boats has decided to expand one of its lines. The company is considering three Location alternatives. The cost structure for each location is given as shown in the table.
Location
Fixed Cost/yr
variable cost/unit
L1
13,515
2.3
L2
8,605
3.1
L3
6,388
4.1
a) The range of output for location alternative 1 that would yield the lowest total cost is (Ex. In whole number, use Q, <, <=, >, >= to specify the range)
b) The range of output for location alternative 2 that would yield the lowest total cost is (Ex. In whole number, use Q, <, <=, >, >= to specify the range)
c) The range of output for location alternative 3 that would yield the lowest total cost is (Ex. In whole number, use Q, <, <=, >, >= to specify the range)
d) The alternative would yield the lowest total cost for an expected annual volume of 1505 boats is location (Ex. type in as L1, L2, or L3)
Location
Fixed Cost/yr
variable cost/unit
L1
13,515
2.3
L2
8,605
3.1
L3
6,388
4.1
Explanation / Answer
option D is correct, the remining are wrong