. Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual fixed costs at Location B are $600,000 with variable costs of $32 per unit. Sales volume is estimated to be 30,000 units per year. At what volume are the two facilities equal in cost?

13,043.48 units

Explanation:

Cost Equation calculate the total cost of the products produced / sold in a period. It adds the variable cost of the given numbers of units and Fixed cost for the period to calculate the total cost.

The Total Cost Can be Calculated using following Equation.

y = mx + b

y = Total cost

m = variable cost

b = fixed cost

x = quantity of unit produced / sold

Placing Values in the cost equation at each location.

Location A

y = $55x + $300,000

Location B

y = $32x + $600,000

According to given condition

Cost of Location A = Cost of Location B

$55x + $300,000 = $32x + $600,000

$55x - $32x = $600,000 - $300,000

$23x = $300,000

x= $300,000 / $23 = 13,043.48 units

Check

y = $55 x 13,043.48 + $300,000 = $717,391.4 + $300,000 = $1,017,391.4

Location B

y = $32x 13,043.48 + $600,000 = $417,391.4 + $600,000 = $1,017,391.4

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

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