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A firm is considering teo location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs 0.30 per ynit. At alternative
A firm is considering teo location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs 0.30 per ynit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of 0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost?
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