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 Table 13.8 to determine the best statement.

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

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

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

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

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