Question: Find out the lowest-cost range for multiple locations. Fixed and variable costs for the four potential plant locations are shown in the table below: Location

  1. Find out the lowest-cost range for multiple locations. Fixed and variable costs for the four potential plant locations are shown in the table below:

Location

Fixed Cost

Variable Cost

A

$200,000

$500

B

$300,000

$400

C

$100,000

$800

If the actual output is expected to be 250 units per year.

  1. Find the total cost of operating in each location? Which location would be ideal in this situation? Why? (20 Point)

  1. Plot the total cost lines for these locations on the graph below. (15 Point)

  1. Identify the range of output for which location C would have the lowest total cost. (5 Point)

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