Question: Fixed and variable costs for four potential plant locations are shown below: table [ [ Location , Fixed Costs / year , Variable Cost
Fixed and variable costs for four potential plant locations are shown below:
tableLocationFixed CostsyearVariable CostUnitARM RM BRM RM CRM RM DRM RM
a If expected output at the selected location is to be units per year, which location would provide the lowest total cost?
b Plot the totalcost lines for these locations on a single graph
c Identify the range of output for which each alternative is superior ie has the lowest total cost
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