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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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