A manufacturing firm is considering two locations for a plant to produce a new product. Location A

Question:

A manufacturing firm is considering two locations for a plant to produce a new product. Location A has a fixed cost of \($80,000\) and a variable cost of \($20\) per unit. Location B has a fixed cost of \($120,000\) and a variable cost of \($15\) per unit. What is the firm's point of indifference between these locations?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: