Determine where darren should locate

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Reference no: EM131278974

Darren"s Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about each of these four cities:


Fixed Costs per Year

Variable Costs per Unit

Phoenix

$300,000

$/3.00

Buffalo

$600,000

$60.00

Seattle

$1,500,000

$38.00

Atlanta

$1.750,000

$47.00

a. Use breakeven point analysis to determine where Darren should locate.

b. Based solely on breakeven quantity, if Darren"s manufacturing forecast for the foreseeable future is 40,000 units annually.

Reference no: EM131278974

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