Peter Boyle is planning to build a new recycling plant. The fixed and variable costs for three

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Peter Boyle is planning to build a new recycling plant. The fixed and variable costs for three potential sites are as follows (in U.S. dollars):

Cost Chicago Erie Dallas $900,000 Fixed Cost $1,200,000 $700,000 Variable Cost per Unit $75 $110 $90


1. Over what range of recycling volume is each city optimal?

2. For a recycling volume of 5,000 units, which site is the best?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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