Question

What are the proposed plants along with their annual fixed cost and annual capacity?

1) Detroit - $175,000, 40,000
2) Toledo - $300,000, 10,000
3) Denver - $375,000, 20,000

Answer 1

The plants proposed are Detroit with an annual fixed cost of $175,000 and capacity of 40,000 units, Toledo with a cost of $300,000 and capacity of 10,000 units, and Denver with a cost of $375,000 and capacity of 20,000 units.

Step-by-step explanation:

The question asks about the proposed plants, along with their corresponding annual fixed cost and their annual capacity. The proposed plants are as follows:

• Detroit - Annual Fixed Cost: $175,000, Annual Capacity: 40,000 units
• Toledo - Annual Fixed Cost: $300,000, Annual Capacity: 10,000 units
• Denver - Annual Fixed Cost: $375,000, Annual Capacity: 20,000 units

This information is crucial for assessing the financial and operational aspects of each plant. The capacity indicates the maximum number of units each plant can produce in a year, and the cost represents the recurring expenses to maintain operations, regardless of output level. Understanding these figures is important for making strategic business decisions.