Question $40$:

SCRace's manager needs to expand her capacity. She is considering three locations $-$

Hanoi, Da Nang, Ho Chi Minh $-$ for a new plant. The company wishes to find the most

economical location for an expected volume of $2,000$ units per year.

SCRace's manager conducts locational cost $-$ volume analysis. To do so$,$ she determines

that fixed costs per year at the sites are $$30,000,$$$60,000,$ and $$110,000,$ respectively;

and variable costs are $$75$ per unit, $$45$ per unit, and $$25$ per unit, respectively. The

expected selling price of each system produced is $$120.$

The variable cost for Ho Chi Minh is now expected to be $$30$ per unit. What is the new

crossover point between Da Nang and Ho Chi Minh?

A$.3334$ units

B$.1283$ units

C$.529$ units

D$.2174$ units