1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open...

 

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1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations Fixed Costs Variable Costs/unit a. i. iv. V. A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 Write an equation to represent the total costs for each location. [4 marks] Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. [8 marks] Over what range of output is location A the most preferred location?[1 marks] Over what range of output is location B the most preferred location?[1 marks] Over what range of output is location C the most preferred location?[1 marks] 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Locations Fixed Costs Variable Costs/unit a. i. iv. V. A 60,000 30 B 80,000 20 C 100,000 15 D 130,000 10 Write an equation to represent the total costs for each location. [4 marks] Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. [8 marks] Over what range of output is location A the most preferred location?[1 marks] Over what range of output is location B the most preferred location?[1 marks] Over what range of output is location C the most preferred location?[1 marks]

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