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A manufacturer of industrial machines wants to move to a larger plant, and has identified two alternatives. Location A has annual fixed cost of $787,000
A manufacturer of industrial machines wants to move to a larger plant, and has identified two alternatives. Location A has annual fixed cost of $787,000 and variable cost of $13,000 per unit; location B has annual fixed cost of $941,000 and variable cost of $11,000 per unit. a. At what quantity of output would the two locations have the same total cost? Quantity units b-1. For what range of output would location A be superior? (Do not leave any empty spaces; input a 0 wherever it is required.) Range to b-2. For what range would B be superior (i.e., have lower total annual cost)? 78 or less 78 or more
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