The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations.
Question:
a. Plot the total cost curves for the four plant locations on a single graph.
b. Compute the range of demand for which each location has a cost advantage.
c. Which plant location is best if demand is 30,000units?
Transcribed Image Text:
LOCATION ANNUAL FIXED COST UNIT VARIABLE COST $200,000 $300,000 $400,000 $600,000 $50 $45 $25 $20
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a Plot the 4 graphs as shown below TC A 200000 50Q TC B 300000 45Q TC C 400000 25Q TC D 600000 20Q b ...View the full answer
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