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
- 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 | $105,000 | $12 |
| B | $63,000 | $15 |
| C | $130,000 | $8 |
| D | $110,000 | $7 |
The actual output of the mentioned locations is 11,000 units per year.
- Find out the total cost of each location?
- Plot the total cost lines for these locations on a single graph
- Identify the range of output for which each location has the lowest total cost.
- If expected output at the selected location is to be 5000 units per year, which alternative would provide the lowest total cost?
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