Amanufacturing facility is considering two location alternatives, x and y. at location x, fixed costs would be $5,000,000 per year and variable costs would be $0.30 per unit. at location y, fixed costs would be $4,600,000 per year and variable costs would be $0.40 per unit. if annual demand is expected to be 10 million units, which location should be chosen

As total amount at location x is less than y hence location x is favorable

Explanation:

Given data;

for location X

Fixed costs is $5,000,000 per year

variable cost is $0.30/unit

for location Y

Fixed costs is $4,600,000 per year

variable cost is $0.40/unit

Annual demand is 10 million units

total cost for total units at location x = 5,000,000 + 0.30 ×10,000,000

total cost  = $8,000,000

total cost for total units at location y = 4,600,000 + 0.30 ×10,000,000

total cost  = $7,600,000

As total amount at location x is less than y hence location x is favorable

what

explanation:

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it