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 _$820, per year and variable costs of __$15, per standard unit produced. mckinney would have annual fixed costs of 920, and variable costs of __13, per standard unit. the finished items sell for _28, eacha) the volume of output at which both the locations have the same profit= standard units (round to nearest whole number)d) the breakeven point for bonham is unitsthe breakeven point for mckinney is units

Instructions are listed below.

Explanation:

Giving the following information:

Two alternative locations have been identified:

Bonham:

fixed costs of  $820,000

variable costs of $15,000

Mckinney:

fixed costs of $920,000

variable costs of $13,900

1) Bonham= 820,000 + 15,000*x

Mckinney= 920,000 + 13,900*x

820,000 + 15,000x= 920,000 + 13,900x

1,100x= 100,000

x= 91 units

2) Break-even point= fixed costs/ contribution margin

Bonham:

Break-even point= 820,000/(28,000 - 15,000)= 63 units

Mckinney:

Break-even point= 920,000/(28,000 - 13,900)= 65 units

answer; /// i do believe that the correct answer is ; ///claude garamond;

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