The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations.

Location	Annual Fixed Cost ($)	Unit Variable Cost ($)
A	420,000	20
B	100,000	50
C	290,000	25
D	160,000	45

Choose the correct graph for the total cost curves for the four plant locations.

The correct graph is -Select-graph Agraph Bgraph Cgraph DItem 1 .

A.		B.
C.		D.

Find the break-even points and determine the range of demand for which each location has a cost advantage. Do not round intermediate calculations. Round your answers to the nearest whole number.

		At Q less than the	At Q more than the
		break-even point,	break-even point,
	Break-even point	which location has	which location has
Locations	(units)	a cost advantage?	a cost advantage?
A - B		-Select-ABItem 3	-Select-ABItem 4
A - C		-Select-ACItem 6	-Select-ACItem 7
A - D		-Select-ADItem 9	-Select-ADItem 10
B - C		-Select-BCItem 12	-Select-BCItem 13
B - D		-Select-BDItem 15	-Select-BDItem 16
C - D		-Select-CDItem 18	-Select-CDItem 19

The sales manager predicts that demand will be 38,000 units. Which facility is best for the predicted demand? Do not round intermediate calculations. Round your answer to the nearest dollar.

Location -Select-ABCDItem 20 is best for the predicted demand because it results in the lowest total cost of $ .

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