Question: Two new locations are being considered for a new facility. They have annual fixed and variable costs as follows: 1. At what quantity would the

Two new locations are being considered for a new

Two new locations are being considered for a new facility. They have annual fixed and variable costs as follows: 1. At what quantity would the costs be the same for either location? [60,000 units/year] 2. What are the total costs at the point of indifference? [$880,000] 3. Which location is superior for an annual output of 120,000 ? [Hong Kong, total costs are less at $1,300,000] 4. How much money would be saved if the superior option identified in question #3 is chosen? Hint: compare the cost of each location at the given output [$180,000]

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