Problem 8-1 A newly formed firm must decide on a plant location. There are two alternatives under consideration locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fired and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers Revenue per unit will be $171 in either case Annual fixed costs ( willions) Variable cost per unit Expected aldeand (units) Omaha Kansas City $ 1.1 $ 215 10,ese Using the above information, determine which location would produce the greater profit. (Omit the "S" sign in your response.) Omaha would produce the greater gross profit of Prov 1 of 8 Next > Type here to reach R D . B. N . CH USE YOUR SMA PHONE FOR Problem 8-3 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 $200,000 and variable costs of $12,000 per unit location B has annual foxed costs of $400,000 and variable costs of $10,000 per unit. The finished items sell for $15,000 each ces 0. At what volume of output would the two locations have the same total cost? Volume of output units b-1. For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output Oto 6-2. For what range would be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output or more Wype bere to search O a A d K B. N. USE YOUR SMARTPHONE OSO 9215