Question: Consider the four location alternatives below: Location Fixed Cost $ Variable Cost $/Unit A 250000 11 B 100000 30 C 150000 20 D 200000 35

Consider the four location alternatives below:

Location Fixed Cost $ Variable Cost $/Unit
A 250000 11
B 100000 30
C 150000 20
D 200000 35

Clearly identify the quantity ranges for which each location is preferred. Use a diagram to sketch this initially (Cost on the vertical axis, Quantity on the horizontal axis). Then precisely calculate and identify the quantity (volume) breakpoints at which the preferred location switches (to do this you have to solve for equal cost at each breakpoint for the two locations involved). Your diagram and work should be in final form do not put your rough sketch and rough calculations in the final answer. Neatness is a factor in addition to correctness of solution.

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