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A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit. The finished items sell for $17,000 each a. At what volume of output would the two locations have the same total cost? Volume of output 40 units 6-1. For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output O to 39 b-2. For what range would be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output 49 or more
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