Question: Additional problem 08-02 (Algo) A firm that has recently experienced enormous growth is seeking to expand its capacity by leasing a small plant, and is

Additional problem 08-02 (Algo) A firm that has

Additional problem 08-02 (Algo) A firm that has recently experienced enormous growth is seeking to expand its capacity by leasing a small plant, and is considering three cities. The table below shows fixed cost per year, variable cost per unit, and additional system transportation cost per year for each location. Location Plant A Plant B Plant C Fixed Cost per Year $ 52,000 $50,000 $ 64,000 Variable Cost per Unit $ 6 $ 4 $ 7 Transportation Cost per Year $ 224,000 $ 268,000 $ 212,000 a. Compute the annual total cost for each plant, based on an expected annual volume of 80,000 units. Location Total cost Plant A Plant B Plant C b. At what annual volume would this company be indifferent between Plant A and Plant B? Annual volume

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