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A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative

A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below.

A. complete a numeric locational cost-volume analysis

b. Indicate over what range each of the alternatives A, B, C is the low-cost choice

c. Is any alternative never preferred? Explain

CostABC

Fixed ($)

2,500,0002,000,0003,500,000
Variable ($ per unit)2125

15

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