Continuous Assessment TEST 2 with key IBN from Taiwan plans to set up a new computer manufacturing plant in Europe. The costs would be the followings at the three possible locations. Location Variable cost/unit Yearly fixed costs Initial investment Lisbon 18 1 900 000 14 000 000 Paris 22 1 700 000 12 000 000 Rome 20 1 500 000 10 000 000 a) Which place would be the most advantageous considering the costs in case of producing 100 000 units per year for 5 years? (50) b) At what yearly production volume would the costs be equal in Lisbon and Rome during the 5 years? (50) (Total Max: 85%)