Volume of output at which both locations have same profit

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Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of dollar 780, 000 per year and variable costs of dollar 15,000 per standard unit produced. McKinney would have annual fixed costs of dollar 940, 000 and variable costs of dollar 13,900 per standard unit. The finished items sell for dollar 29,000 each.

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

Reference no: EM131149348

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