A small producer of machine tools wants to move to a larger building, and has identified two
a...
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Mathematics, 17.03.2020 18:06 mariahgriego4126
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 $800,000 and variable costs of $14,000 per
unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit1
.
The finished items sell for $17,000 each.
A) State the total-cost formula:
B) Calculate a second point for each location: Set a selected quantity = Use q=150 units
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