What further information do you think Café Aleena needs to gather before they make a final decision?
If choose a location with low cost, might....
convenience for customers
limited supply of suitably qualified labour
opportunities of receiving government grants
risks of low sales
If choose a location with high cost, might....
potential for higher sales
high break-even level of production
close to customers
low profits
Review: What's the formula for break-even level of output?____/_____
Review: What's the formula for contribution?___-___
Review: What is External Economies of Scale?
Review: What is External Diseconomies of Scale?
With Data shown, what can be calculated to assist in Choosing a Factory Location
Whats the profit for Location A？___Whats the profit for Location B？___
Whats the Break-even Units for Location A？___ Whats the Break-even Units for Location B？___
With Data shown, what can be calculated to assist in Choosing a Factory Location
Whats the Payback Period for Location A？___years
Whats the Payback Period for Location B？___years___month
Whats the formula for ARR?___/___
How to calculate the average investment?(___+___)/___
Whats the ARR for location A?
Whats the formula for ARR?___/___