Question: xChing - Chang Kuo is considering opening a new foundry in Edwardsville or Fayettevile, Arkansas, to produce high - quality rifle sight. He has assembled

xChing-Chang Kuo is considering opening a new foundry in Edwardsville or Fayettevile, Arkansas, to produce high-quality rifle sight. He has assembled the following fixed-cost and variable-cost data: (2 points)
Per-Unit Cost
Location
Fixed Cost Per Year ($)
Material($)
Labor($)
Overhead($)
Edwardsville
30,000
.25
.75
.75
Fayetteville
20,000
1
1
1
a. What is the volume at the intersection of the Edwardsville and Fayetteville cost lines?
b. Over what range of annual volume is each facility going to have a competitive advantage?

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