An? alternative-fuel automobile manufacturer produces

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Reference no: EM132268738

An? alternative-fuel automobile manufacturer produces family vehicles that are cost effective for short distance driving? (around town). Due to recent demand increase the owner of the company wants to expand the production of their vehicles. The operations manager of the company have identified two possible alternative? locations:

Datona and Tampa

Daytona would have fixed costs of $800,000 per year and variable costs of $14,000 per unit produced.

Tampa

would have annual fixed costs of $920,000 and variable costs of $12,800 per unit. The finished vehicles sell for $28,000 each.

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

?b) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number, Datona is superior below

a. 100 units

b. 120 units

c. 0 units.

?c) Based on the analysis of the? volume, after rounding the numbers to the nearest whole? number,Tampa is superior above

a. 0 units

b. 80 units

c. 100 units

?d) The? break-even point for Datona is _____ units. ?(Enter your response rounded to the nearest whole? number.) The? break-even point for Tampa is ____ units. ?(Enter your response rounded to the nearest whole? number.)

Reference no: EM132268738

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