A Company is considering building a plant in of three possible locations. They have estimated the following parameters for each location:
Location Fixed Cost Variable Cost
UK 300 000 5.75
US 800 000 2.75
SA 100 000 8.00
For what sales volume should they choose each Location?
Hi- is there any more of this question. I assume it must be a breakeven/ CVP exercise but you’ve got no selling price to calculate contribution.
If nothing else – please post the answer & Ill try to understand what the question requires from that.
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