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A manufacturing firm is considering four locations for a new plant. They have collected information on fixed and variable costs for the 4 potential plant
A manufacturing firm is considering four locations for a new plant. They have collected information on fixed and variable costs for the 4 potential plant locations. (8 points) Location Fixed cost Per unit costs Material Variable labor Variable overhead A $250,000 $4 $3 $4 B $100,000 $8 $10 $14 C $150,000 $5 $7 $8 D $200,000 $8 $12 $15 a) Plot the total cost curves for the four plant locations on a single graph. (You may take a picture and attach it) b) Find the break-even points and determine the range of demand for which each location has a cost advantage. c) Which plant location is best if demand is 8,000 units
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