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Problem 8 - 3 ( Algo ) A small producer of machine tools wants to move to a larger building, and has identified two alternatives.

Problem 8-3(Algo)
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $100,000 and variable costs of $13,000 per unit; location B has annual fixed costs of $300,000 and variable costs of $8,000 per unit. The finished items sell for $18,000 each.
a. At what volume of output would the two locations have the same total cost?

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