Question: Five locations are being considered for future expansion. The table below lists the fixed and variable costs for each location. Determine the best choice by

Five locations are being considered for future expansion. The table below lists the fixed and variable costs for each location. Determine the best choice by cost if there is an anticipated demand of 25,000 units.

Location

Fixed Cost

Variable Cost

Anacortes

$200,000

$11.00

Bellingham

$225,000

$9.00

Everett

$270,000

$5.00

Portland

$310,000

$7.00

Seattle

$360,000

$4.00

  1. Determine the best choice according to the least expensive city if there is an anticipated demand of 25,000 units.

b. Of the three lowest cost locations from part a, what are the indifference points between them?

NEED HELP WITH PART B

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