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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.
Costs A B C
Fixed ($) 2,500,000 2, 000,000 3,500,000
Variable ($ per unit) 250 200 150
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