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Tesla is evaluating 3 sites for a new production facility. Site A would require an annualized fixed cost of $10,000,000, Site B would require $18,000,000,
Tesla is evaluating 3 sites for a new production facility. Site A would require an annualized fixed cost of $10,000,000, Site B would require $18,000,000, and Site C would require $25,000,000. The variable cost per unit at Site A is $2,500,$1,500 at Site B, and $1,000 at Site C. If annual demand is expected to be 20,000 units, Which Site should be chosen? C B A
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