Question: which city has a cost advantage when quantity is less than 20k units? 2. The Vienna Company has identified four locations to set up a

which city has a cost advantage when quantity is less than 20k units? 2. The Vienna Company has identified four locations to set up a

2. The Vienna Company has identified four locations to set up a new production facility. They have determined the fixed and variable costs associated with each location as follows: ANNUAL FIXED COST ($) UNIT VARIABLE COST ($) LOCATION Philadelphia Atlanta Miami Houston 10,000 30,000 60,000 70,000 6 5 4 7 a. Plot the total cost curves for the three plant locations on a single graph. b. Find the break-even points and determine the range of demand for which each location has a cost advantage. Which city has no cost advantage at all? c. Which plant location is best if demand is i) 40,000 units, ii) 15,000 units?

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