1. The manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved are given in the table below:-

	Locations
Costs	A	B	C
Fixed	500,000	600,000	800,000
Variable	40	30	20
	i. Based on costs, over what range of units will location A be preferred?
	ii. Based on costs, over what range of units will location B be preferred?
	iii. Based on costs, over what range of units will location C be preferred?

Answer rating: 100% (QA)

To determine over what range of units each location will be preferred based on costs we need to calculate the total cost for each location and then co... View the full answer