Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual

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Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows:

Location Fixed Costs Variable Costs A $65,000 $2/unit B $39,000 $10/unit C $35,000 $10/unit D $60,000 $3/unit If demand is expected to be 2,500 units, which location is best?

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