which city has a cost advantage when quantity is less than 20k units? 2. The Vienna Company

which city has a cost advantage when quantity is less than 20k units?

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2. The Vienna Company has identified four locations to set up a new production facility. They have determined the fixed and variable costs associated with each location as follows: ANNUAL FIXED COST ($) UNIT VARIABLE COST ($) LOCATION Philadelphia Atlanta Miami Houston 10,000 30,000 60,000 70,000 6 5 4 7 a. Plot the total cost curves for the three plant locations on a single graph. b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Which city has no cost advantage at all? c. Which plant location is best if demand is i) 40,000 units, ii) 15,000 units? 2. The Vienna Company has identified four locations to set up a new production facility. They have determined the fixed and variable costs associated with each location as follows: ANNUAL FIXED COST ($) UNIT VARIABLE COST ($) LOCATION Philadelphia Atlanta Miami Houston 10,000 30,000 60,000 70,000 6 5 4 7 a. Plot the total cost curves for the three plant locations on a single graph. b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Which city has no cost advantage at all? c. Which plant location is best if demand is i) 40,000 units, ii) 15,000 units?