A manufacturing firm is considering two locations for a plant to produce a new prod- uct. Location
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A manufacturing firm is considering two locations for a plant to produce a new prod- uct. Location A has a fixed cost of \($80,000\) and a variable cost of \($20\) per unit. Loca- tion B has a fixed cost of \($120,000\) and a variable cost of \($15\) per unit. The firm plans to manufacture 20,000 units a year at the plant. Where should the plant be located?
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