This lecture is about finding the location for the minimum cost for a certain number of units. We might have different locations in our view for selection based on the cost involved. And for selection of a single location we need to consider the number of units we are willing to produce. Because we might have to have more cost for one location at a certain location. And changing the location we can see that the cost analysis will force us to select a different location.

This technique is very much helpful for visualizing the costs using the cost Vs number of units plot. and also using the mathematical linear equation for understanding the principle of that cost vs number of units produced.

This is called break even analysis because at certain points the costs crosses and the beyond that number of units we need to select a different location than we were selecting below those number of units.

0:00 Locational break even analysis Intro
1:15 Fixed cost
2:03 Variable cost
3:24 Formula for break even analysis
6:04 Example of Locational break even analysis solved
10:04 graph of the problem
12:05 break even points