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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 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 $ and variable costs of $ per unit; location B has annual fixed costs of $ and variable costs of $ per unit. The finished items sell for $ each.
a At what volume of output would the two locations have the same total cost?
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