Question: 4. - 8 Points - ABC Company is looking to expand into Europe by opening a fulfillment center, For each location, the company has determined

4. - 8 Points - ABC Company is looking to expand into Europe by opening a fulfillment center, For each location, the company has determined annual fixed costs for facilities and equipment and variable costs per unit for labor and overhead as shown in the table below. Location Fixed Costs Variable Costs A $750,000 $16 per order B. $615,000 $20 per order $398,000 $21 per order 1) Determine the total cost formula for each location on the next page. Total Cost = FC + Qv Where FC = Annual Fixed Cost, Q - Quantity of Output, v = variable cost per unit 2) Determine which alternative would be preferred if the annual volume equals 55,000 orders. Problem 4 continues on the next page. off - Answers: 1) Location Formula A B c 2) Location Total Annual Cost B Which location is preferred? Enter answer in box
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