Question: An airport is evaluating three different baggage handlings system which vary according to degree of automation. The most automated system has the greatest fixed costs

An airport is evaluating three different baggage handlings system which vary according to degree of automation. The most automated system has the greatest fixed costs and least variable cost per baggage handled.

Annual fixed cost Variable cost

Low 450000 1.8

Moderate 1050000 .6

Hight 1500000 .2

Explain (in sentence form) the volumes ranges for which each baggage handling system will have the least total costs.

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