Question: 2. An Operations Manager has narrowed the search for a new facility location to four communities. The annual fixed costs (land, property taxes, insurance equipment

2. An Operations Manager has narrowed the search for a new facility location to four communities. The annual fixed costs (land, property taxes, insurance equipment and buildings) and the variable costs (labor, materials, transportation and variable overhead) are shown below. No LOCATION (FIXED COST /YEAR ) in Rs. (VARIABLE COST /YEAR) in Rs. 1 CHENNAI 200000 72 2 CALCUTTA 350000 48 3 MUMBAI 550000 34 4 DELHI 650000 40 Plot the total cost curves for all the communities on a single graph and identify on the graph the approximate range over which each community provides the lowest cost. Calculate the break-even quantities over the relevant ranges. If the expected demand is 18000 units per year, what is the best location
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