Question: Mahmoudco Construction has two different locations under consideration for constructing a new workers house. The company's president estimates that due to differing land costs, utility

Mahmoudco Construction has two different
Mahmoudco Construction has two different locations under consideration for constructing a new workers house. The company's president estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Location 1 Location 2 Annual fixed cost $5,000 $8,000 Variable cost $ 200 $150 If it is estimated that 20 workers will be living in this new chapter house, which location should the company select? IF 50

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