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

An operations manager has narrowed down the search for a new plant for Tim! 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

Use the information in the Table to determine the best statement.

A) Location C is the best one if volumes are quite high

B) Location A becomes the most expensive place to produce at volumes in excess of 2,000.

C) The break-even quantity between A and B is less than or equal to 5,000 units.

D) The break-even quantity between C and B is more than 30,000 units.

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