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Item $8$

Problem $8-3($Algo$)$

A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $$150,000$ and variable costs of $$11,000$ per unit; location B has annual fixed costs of $$350,000$ and variable costs of $$6,000$ per unit. The finished items sell for $$16,000$ each.

a$.$ At what volume of output would the two locations have the same total cost?

b$-1.$ For what range of output would location A be superior?

Note: Enter your answer as a whole number. Do not include the indifference point in your answer.

b$-2.$ For what range would B be superior?

Note: Enter your answer as a whole number. Do not include the indifference point in your answer.