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Due to increase in demand for Mazda's popular model XII, their production manager has narrowed the search for a new facility location to three sites:
Due to increase in demand for Mazda's popular model XII, their production manager has narrowed the search for a new facility location to three sites: A, B, and C to locate a new production facility to build their new-model XII. The objective is to identify a site with minimum production cost, where cost is measured by the annual fixed cost plus variable cost per unit. Both the annual fixed costs and variable costs are provided below: Production manager is determined to identify the best location possible.. a) Volume of production above which location C is recommended = units (round your response up to the next whole number). b) Volume of production below which location A is recommended = units (round your response up to the next whole number). c) Over what range of volume is location B optimal? A. Location B is never optimal because its cost line always exceeds that of A or C for all volume levels. B. Location B is optimal for volumes above 26, 667 units. C. Location B is always optimal because its cost line is always below that of A and C for all volume levels. D. Location B is optimal for volumes from 11, 112 to 26, 667 units
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