Question: Location Fixed cost per year Material Variable labor Overhead Spain (200,000 E0.20 E0.40 E0.40 Portugal (180,000 E0.25 0.75 60.75 Denmark (170,000 (1.00 E1.00 (1.00 -

E0.20 E0.40 E0.40 Portugal (180,000 E0.25 0.75 60.75 Denmark (170,000 (1.00 E1.00

Location Fixed cost per year Material Variable labor Overhead Spain (200,000 E0.20 E0.40 E0.40 Portugal (180,000 E0.25 0.75 60.75 Denmark (170,000 (1.00 E1.00 (1.00 - 1) Graph the total cost lines. -2) Over what range of annual volume is each facility going to have a competitive advantage? -3) What is the volume at the interaction of Portugal and Denmark cost lines

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