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A Manufacturing Firm Is Considering Two Locations for a Plant

Question 54

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A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows If the annual demand will be 20,000 units, what would be the cost advantage of the better location? A) $20,000 B) $460,000 C) $480,000 D) $80,000 E) $60,000
If the annual demand will be 20,000 units, what would be the cost advantage of the better location?


A) $20,000
B) $460,000
C) $480,000
D) $80,000
E) $60,000

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