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Hyundai Motors is considering three sitesA, B, and Cat which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal

Hyundai Motors is considering three

sitesA,

B, and

Cat

which to locate a factory to build its new-model automobile, the Hyundai Sport C150. 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

Variable Cost per Auto Produced

A

$11,000,000

$2,500

B

$24,000,000

$2,000

C

$30,000,000

$1,000

The firm knows it will produce between 0 and 60,000 Sport C150s 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 =(enter your response here) Sport C150s (round your response up to the next whole number).

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