Question: QUESTION 4 The fixed and variable costs of four potential plant locations are shown below: Location Fixed cost per year (RM) Variable cost per unit

QUESTION 4 The fixed and variable costs of four

QUESTION 4 The fixed and variable costs of four potential plant locations are shown below: Location Fixed cost per year (RM) Variable cost per unit (RM) A 250,000 11 B 100,000 150,000 200,000 35 30 20 D a) Identify the range of output for which cach alternative is superior. b) If expected output is to be 8,000 units per year, which location would be the best location? [13+2=15 marks

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