Question: Fixed and variable costs for four potential plant locations are shown below: Location Fixed Cost Variable Cost per Year per Unit A $200,000 $18 B

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

Location

Fixed Cost

Variable Cost

per Year

per Unit

A

$200,000

$18

B

$120,000

$25

C

$150,000

$20

D

$250,000

$18

not using excel please.

The maximum production volume is 40,000 units.

  1. Find the best location based on the maximum production volume.
  2. Find the volume range/location recommendations.

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