Question: Fixed and variable costs for three potential factory locations are shown below: Location Fixed Cost Variable Cost per Year per Unit A $45,000 $15 B

Fixed and variable costs for three potential factory locations are shown below:

Location

Fixed Cost

Variable Cost

per Year

per Unit

A

$45,000

$15

B

$60,000

$12

C

$50,000

$10

The maximum production volume is 7,000 units.

Note 1: for parts 1 to 3, if the locations do not intersect, enter 0

Note 2: for parts 4 to 6, if the location will not be selected for any volume, enter 0

1) The intersection between locations A and B is at volume ?

2) The intersection between locations B and C is at volume ?

3) The intersection between locations A and C is at volume ?

4) The location A is cheaper if the volume is between ? and ?

5) The location B is cheaper if the volume is between ? and ?

6) The location C is cheaper if the volume is between ? and ?

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