Question

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 $800,000 per year and variable costs of$14,000 per standard unit produced. McKinney would have annual fixed costs of $920,000 and variable costs of$13,000 per standard unit. The finished items sell for $29,000 each. What is the relevance of break-even points for these cities?

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Answered 5 months ago
Answered 5 months ago
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For this problem, we are asked to assess the significance of breakeven points for Bonham and McKinney.

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