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The following information relates to the costs involved in two options for setting up a production facility. Option A B Fixed Costs ($ million)

The following information relates to the costs involved in two options for setting up a production facility.

The following information relates to the costs involved in two options for setting up a production facility. Option A B Fixed Costs ($ million) 200,000 160,000 Variable Costs ($)/Unit Labour 110 120 Material 300 400 Energy 70 80 Determine the range of production volume for each option that would yield the lowest total cost; illustrate the solution using a graph.

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