Dolphin Motors is evaluating three sites€”A, B, and C€”to locate a plant to build its new Sedan Dolphin XL600. The total annual cost is the sum of the annual fixed costs and variable costs of production. Dolphin Motors has gathered the following cost data for each site (in U.S. dollars):

1. Over what range of annual production volume is each location optimal?

2. If the expected production volume is 20,000 sedans, which location would you recommend?

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B. Cost Annual Fixed Cost Variable Cost Per Sedan Produced $23,000,000 $12,000,000 $20,000,000 $1200 $3000 $2200