Question: xChing - Chang Kuo is considering opening a new foundry in Edwardsville or Fayettevile, Arkansas, to produce high - quality rifle sight. He has assembled
xChingChang Kuo is considering opening a new foundry in Edwardsville or Fayettevile, Arkansas, to produce highquality rifle sight. He has assembled the following fixedcost and variablecost data: points
PerUnit Cost
Location
Fixed Cost Per Year $
Material$
Labor$
Overhead$
Edwardsville
Fayetteville
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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