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2. Ching-Chang Kau is considering opening a new foundry in Denton, Texas; Edwardsville, Ilinois; or Fayetteville, Arkansas, to produce high quality rifle sights. He has

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2. Ching-Chang Kau is considering opening a new foundry in Denton, Texas; Edwardsville, Ilinois; or Fayetteville, Arkansas, to produce high quality rifle sights. He has assembled the following fixed-cost and variable-cost data: Per-unit Costs (Variable costs) Location Fixed Cost Per Material Labor Overhead Year Denton $200,000 $0.20 $0.40 $0.40 Edwardsville S180,000 $0.25 $0.75 80.75 Fayetteville $170,000 $1.00 $1.00 $1.00 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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