Potential locations A,B and C have the cost structures as shown below for producing a product expected
Question:
Potential locations A,B and C have the cost structures as shown below for producing a product expected to sell for 3250 per unit. Find the most economical location for an expected volume of 2750 units per year.
Site Fixed Cost/Year
(Z)
Variable Cost/Unit
(Z)
A 65, 00, 000 1,200 B 75,00,000 560 C 55,00,000 4,250 AppendixLO1
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