A car manufacturing company decides to expand one of its production lines due insufficiency in handling the increasing workload by their current facilities. Three alternative locations including: A (new location), B (subcontract to another location), and C (expanding existing facilities) are being considered. Feasibility studies suggest that alternative A would have a huge fixed cost of £250,000 per year, but relatively low variable cost of £500 per unit. It will cost £2,500 per unit if the comp

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The best and right idea is to upgrade and expand exis... View the full answer