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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 potential plant locations. points
Location Fixed cost Per unit costs
Material Variable labor Variable overhead
A $ $ $ $
B $ $ $ $
C $ $ $ $
D $ $ $ $
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 breakeven points and determine the range of demand for which each location has a cost advantage.
c Which plant location is best if demand is units?
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