Ang company that produces pleasure boats has decided to expand on of its lines.
ID: 446295 • Letter: A
Question
Ang company that produces pleasure boats has decided to expand on of its lines. The company is considering three location alternatives. The cost structure for each location is given as shown in the table. 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 that would yield the lowest total cost for an expected annual volume 4505 boats is location (Ex. Type in as L1,L2, or L3)Explanation / Answer
a. the range 1.1 total cost is $15,000
b. the lowest cost location is 1.2 is 10,800
c. the cost is 11,200
d. the second alternative, i.e. 1.2 yields lowest cost