The Vienna Company has identified four locations to set up a new production facility. They have determined the fixed and variable costs associated with each location as follows:

Location	Annual Fixed Cost ($)	Unit Variable Cost ($)
Philadelphia	30,000	4
Atlanta	10,000	5
Miami	65,000	3
Houston	80,000	6

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. If the break-even point is negative, enter "DNE".

		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?
Philadelphia - Atlanta		-Select-AtlantaPhiladelphiaItem 3	-Select-AtlantaPhiladelphiaItem 4
Philadelphia - Miami		-Select-MiamiPhiladelphiaItem 6	-Select-MiamiPhiladelphiaItem 7
Philadelphia - Houston		-Select-HoustonPhiladelphiaItem 9	-Select-HoustonPhiladelphiaItem 10
Atlanta - Miami		-Select-MiamiAtlantaItem 12	-Select-MiamiAtlantaItem 13
Atlanta - Houston		-Select-AtlantaHoustonItem 15	-Select-AtlantaHoustonItem 16
Miami - Houston		-Select-MiamiHoustonItem 18	-Select-MiamiHoustonItem 19

Which city has no cost advantage at all?

-Select-MiamiAtlantaHoustonPhiladelphiaItem 20

Which plant location is best if demand is 30,000 units? Do not round intermediate calculations. Round your answer to the nearest dollar.

It is cheaper to produce at the -Select-MiamiAtlantaHoustonPhiladelphiaItem 21 Plant with a total cost of $ .

Which plant location is best if demand is 15,000 units? Do not round intermediate calculations. Round your answer to the nearest dollar.

It is cheaper to produce at the -Select-MiamiAtlantaHoustonPhiladelphiaItem 23 Plant with a total cost of $ .

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Question 2 of 4

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