Business, 17.12.2019 18:31 mjam85877

Amanufacturing firm is considering two locations for a plant to produce a new product. the two locations have fixed and variable costs as follows:
location fc (annual) vc (per unit)
atlanta $ 80,000 $ 20
phoenix $ 140,000 $ 16

at what annual output would the company be indifferent between the two locations?

(a) 60,000 units
(b) 4,000 units
(c) 20,000 units
(d) 15,000 units
(e) 10,000 units

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