Question: Study the caselet provided below and answer the following questions. The management of DGB Enterprises has narrowed down the site selection for a new manufacturing
Study the caselet provided below and answer the following questions.
The management of DGB Enterprises has narrowed down the site selection for a new manufacturing facility to three
potential locations A B and C The information provided below shows the annual fixed costs and variable costs per unit
of the product at each of three locations.
INFORMATION
Location Fixed costs Variable costs per unit
A R R
B R R
C R R
After an extensive market survey, the operations analyst of DGB Enterprises has estimated a R target selling price for
each unit of the product expected to be produced at the facility.
Using a range of production output of units at intervals of units, plot the total production cost curves
of the three locations on the same graph.
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