Question: Question / 11 point A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0,30

Question / 11 point A firm is considering two
Question / 11 point A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0,30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost? Plant B, because it has the lower variable cost per unit Neither Plant A nor Plant B Plant A, because it is cheaper than Plant B Plant B, because it is cheaper than Plant A

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