Question
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow. Location Fixed Cost
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.
Location | Fixed Cost | Variable Cost |
A | $100,000 | $10 |
B | $150,000 | $7 |
C | $200,000 | $5 |
Use the information in the Table to determine the best statement.
A) Location C is the best one if volumes are quite high
B) Location A becomes the most expensive place to produce at volumes in excess of 2,000.
C) The break-even quantity between A and B is less than or equal to 5,000 units.
D) The break-even quantity between C and B is more than 30,000 units.
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