Question: An operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs are as in the table below.

An operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs are as in the table below. Use the information given to determine the best statement. Location Fixed Cost Variable Cost A$275,000 $12 B$ 200,000 $18 C $150,000$23 Location C becomes the most expensive place to produce at volumes in excess of 5,000. Location A is the best one if voltimes are quite high.

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