Table 13.8 an Operations Manager Has Narrowed Down the Search for a for a New

Multiple Choice

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

-Excel Products is planning a new warehouse to serve the Southeast. Locations A, B, and C are under consideration. Fixed and variable costs follow.
Which of the following statements is best?

A) Location A is the best one if volumes are quite high.
B) Location B is best over all volume levels.
C) The total cost of location A, if the volume is 250,000 units, is over $8,000,000.
D) The break-even quantity between A and B is more than 85,000 units but fewer than 200,000 units.