Question: An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Table 1 Location

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

Table 1

Location

Fixed Cost

Variable Cost

A

$210,000

$10

B

$240,000

$7

C

$300,000

$5

Then use break-even analysis to calculate exactly the break-even quantity that defines each range.

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