Question: DO NOT USE EXCEL DO NOT USE EXCEL Q4(b) Daisun Foundry is considering opening a new foundry in Toowoomba, Queensland, Armidale, NSW; or Geelong, Victoria,

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Q4(b) Daisun Foundry is considering opening a new foundry in Toowoomba, Queensland, Armidale, NSW; or Geelong, Victoria, to produce high quality brake drums. The following fixed and variable cost data are available. Per unit costs (S) Fixed cost/year Location Material Labour Overhead ($) Toowoomba 0.20 0.40 0.40 200,000 Armidale 0.25 0.75 0.75 180,000 Geelong 1.00 1.00 1.00 170,000 Over what range of annual volumes does each facility have a competitive advantage? Use a graphical solution and then calculate the exact values. (50 marks)

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