Question
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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