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Sales Volume

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Cath.

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September 13, 2017 at 10:23 am #407408
fransphatlane
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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?
September 14, 2017 at 4:39 pm #407610
Cath
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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.
Many Thanks
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