Question: An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs are as follow: Location
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs are as follow:
Location
Fixed Cost
Variable Cost
A
$50,000
$5
B
$75,000
$3
C
$150,000
$2
Use the information in the above table to address this question: for what range of output is each location superior?Draw a graph (rough graph is acceptable) to highlight your calculations.
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