A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta area or Bekasi. Each of these area options has a local supplier providing The price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question: A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area. b. Sketch a crossover diagram that illustrates these conditions c. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta area or Bekasi. Each of these area options has a local supplier providing The price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question: A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area. b. Sketch a crossover diagram that illustrates these conditions c. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta area
or Bekasi. Each of these area options has a local supplier providing
The price quote for the oil is detailed in the table below.
| area | fixed cost | variabel cost |
| Bogor | 5.500.000 | 55.046.00 |
| Jakarta | 11.500.000 | 35.500.00 |
| Bekasi | 21.500.000 | 15.500.00 |
Question:
A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area.
b. Sketch a crossover diagram that illustrates these conditions
c. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
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