Question: An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost

An operations manager has narrowed down the search for a new King Kola plant to three
locations. Fixed and variable costs follow.
Location Fixed Cost Variable Cost
A $100,000 $10
B $150,000 $7
C $200,000 $5
i. Plot the total cost curves in the chart provided above and identify the range over
which each location would be best. [7 marks]

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