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