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Q1: Eagle Hunt company is planning to open a new plant. They have collected information on fixed and variable costs for three potential plant locations.

Q1: Eagle Hunt company is planning to open a new plant. They have collected information on fixed and variable costs for three potential plant locations.

Location

Annual Fixed Cost Unit Variable Cost

Detroit $500,000 $300

New Orleans $750,000 $200

San Bernardino $900,000 $100

Find the break-even points and determine the range of demand for which each location has a cost advantage. Please show the detailed procedures to get credit. (30 points)

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