Atlantic

Atlantic Manufacturing makes large helical springs used in aircraft landing gear. The company has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about the manufacturing costs of locating in each of these four cities:

Location	Annual fixed cost	Variable costs per unit
Knoxville	475 000	30
Memphis	900 000	20
Toledo	725 000	25
Wichita	350 000	40

A. Plot the total cost curves for all the locations on a single graph.

B. Which city provides the lowest overall cost with what sales quantities (i.e. calculate exact break-even volumes to base your answer to!)?