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 R3000000 R50
B R4500000 R25
C R6000000 R15
After an extensive market survey, the operations analyst of DGB Enterprises has estimated a R75 target selling price for
each unit of the product expected to be produced at the facility.
Using a range of production output of 0200000 units at intervals of 5000 units, plot the total production cost curves
of the three locations on the same graph.

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