Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual

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Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows:

Location A B C D Fixed Costs $65,000 $39,000 $35,000 $60,000 Variable Costs $2/unit $10/unit $10/unit $3/unit


If demand is expected to be 2,500 units, which location is best?

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