Question: Mr . Mokhtar is considering opening a new foundry in Kajang, BB Bangi and Semenyih to produce high - quality product X . He has
Mr Mokhtar is considering opening a new foundry in Kajang, BB Bangi and Semenyih to produce highquality product X He has assembled the following fixed cost and variable cost data:
Location Fixed cost per year RM Per unit costs RM
Material Labor Overhead
Kajang
BB Bangi
Semenyih
a Graph the total costs line
b Over what range of annual volume is each facility going to have a competitive advantage?
c What is the volume at the intersection of the BB Bangi and Semenyih cost lines?
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