Business, 18.04.2020 04:54 barisegebalci2352
A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $210,000 and variable costs of $16,000 per unit; location B has annual fixed costs of $410,000 and variable costs of $12,000 per unit. The finished items sell for $22,000 each.
Required:
a. At what volume of output would the two locations have the same total cost?
b. For what range of output would location A be superior?
c. For what range would B be superior?
Answers: 1
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A small producer of machine tools wants to move to a larger building, and has identified two alterna...
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