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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 $804,000
A manufacturer of industrial machines wants to move to a larger plant, and has identified two alternatives. Location A has annual fixed cost of $804,000 and variable cost of $13,000 per unit; location B has annual fixed cost of $904,000 and variable cost of $9,000 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 0 to b-2. For what range would B be superior (i.e.. have lowertotal annual cost)? 0 26 or less @ 26 or more
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