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 high-quality 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 200,000.20.40.40
BB Bangi 180,000.25.75.75
Semenyih 170,0001.001.001.00
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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