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Your operations group has calculated annual production costs for plants of different sizes. A facility designed to produce 120,000 units of your product per year

Your operations group has calculated annual production costs for plants of different sizes.

A facility designed to produce 120,000 units of your product per year will operate with a total annual production cost of $54 million

A facility designed to produce 150,000 units per year will operate with a total annual production cost of $60 million.

A facility designed to produce 200,000 units per year will operate with a total annual production cost of $84 million.

Is the MES of a facility for producing your product larger than 200,000 units per year?

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