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The manager of a poultry plant wants to expand operations to house 650,000 laying hens, almost doubling the current capacity. If the plant expands on

The manager of a poultry plant wants to expand operations to house 650,000 laying hens, almost doubling the current capacity. If the plant expands on site, it is facing fixed costs of $8.6 million and a unit cost of $7.21 per bird. One alternative (Plan 9) has fixed costs of $3.6 million and a unit cost of $12.46 per hen. A different alternative (Plan X) has a fixed cost of $7 million and a unit cost of $9.41. Finally, a different perspective is captured by Plan B, with a fixed cost of $6.1 million and a unit cost of $8.11. Which is the lowest-cost alternative at the anticipated volume? a. Plan 9 b. Plan X c. Plan B d. On site

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