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Hyundai Motors is considering three sites A , B , and C at which to locate a factory to build its new electric car batteries.

Hyundai Motors is considering three sites A, B, and C at which to locate a factory to build its new electric car batteries. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data:
Site
Annualized Fixed Cost
A - $10,000
B - $24,000
C - $27,000
Variable Cost per Battery Produced
A - $2,400
B - $1,900
C - $1,050
The firm knows it will produce between 0 and 60,000 batteries at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.
Part 2
a) The value of volume, V, of production above which site C is recommended =
batteries (round your response up to the next whole number).
Part 3
b) The value of volume, V, of production below which site A is recommended =
enter your response here batteries (round your response up to the next whole number).
Part 4
c) Over what range of volume is site B optimal?
A.
Site B is never optimal because its cost line always exceeds that of A or C for all volume levels.
B.
Site B is optimal for volumes from 12,593 to 28,000 batteries.
C.
Site B is optimal for volumes above 28,000 batteries.
D.
Site B is always optimal because its cost line is always below that of A and C for all volume levels.

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