Ching-Chang Kuo is considering opening a new foundry in Denton, Texas; Edwardsville, Illinois; or Fayetteville,Arkansas, to produce high-quality rifle sights. He has assembled the following fixed-cost and variable-cost data:

a) Graph the total cost lines.
b) Over what range of annual volume is each facility going
to have a competitive advantage?
c) What is the volume at the intersection of the
Edwardsville and Fayetteville cost lines?

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LOCATION FIXED COST PER YEAR PER-UNIT COSTS VARIABLE MATERIAL LABOR OVERHEAD Denton $200,000 $ .20 $ .40 $ .40 Edwardsville $180,000 $ .25 $ .75 $ .75 Fayetteville $170,000 $1.00 $1.00 $1.00