Table $13\mathrm{.}10$

An operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs are as in the table below:

Location

Fixed Cost

Variable Cost

A

$$275,000$

$$12$

B

$$200,000$

$$18$

C

$$150,000$

$$23$

Use the information in Table $13\mathrm{.}10$ to determine the best statement.

The break$-$even quantity between A and B is more than $15,000$ units.

Location C becomes the most expensive place to produce at volumes in excess of $5,000.$

Location A is the best one if volumes are quite low.

Location A is the best one if volumes are quite high.