Discuss the below in detail:
Q: Hugh Leach Corp., a producer of machine? tools, wants to move to a larger site. Two alternative locations have been identified: BonhamBonham and McKinneyMcKinney.
Bonham Bonham would have fixed costs of $820,000 per year and variable costs of $13,000 per standard unit produced.
McKinneyMcKinney would have annual fixed costs of $940,000 and variable costs of $12,000 per standard unit. The finished items sell for $30,000 each.
a.) The volume of output at which both the locations have the same profit = nothing standard units?