Question: Fixed and variable costs for four potential plant locations are shown below: Location-------------------Fixed Cost------------------------Variable cost A----------------------------------50000-------------------------------------95 B----------------------------------80000-------------------------------------65 C----------------------------------130000-------------------------------------45 a) Find the most economical location for

Fixed and variable costs for four potential plant locations are shown below:

Location-------------------Fixed Cost------------------------Variable cost

A----------------------------------50000-------------------------------------95

B----------------------------------80000-------------------------------------65

C----------------------------------130000-------------------------------------45

a) Find the most economical location for an expected volume of 2000 units per year. ( attach the answer in the field ) (1 Mark )

b) Using Excel, find the volume range/location recommendations. ( 2 Marks)

( Attach the locational cost volume chart and excel solutions)

Fixed and variable costs for four potential plant

Fixed and variable costs for four potential plant locations are shown below: Location -- --Variable cost -95 -Fixed Cost- ---50000-- --80000-- - 130000-- B- --65 --45 a) Find the most economical location for an expected volume of 2000 units per year. (attach the answer in the field ) (1 mark) b) Using Excel, find the volume range/location recommendations. ( 2 Marks) (Attach the locational cost volume chart and excel solutions)

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