A Manufacturing Firm Is Considering Two Locations for a Plant

Multiple Choice

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: $$\begin{array} { l c c } \text { Location } & \text { FC (annual) } & \text { VC (per unit) } \\\hline \text { Atlanta } & \$ 80,000 & \$ 20 \\\text { Phoenix } & \$ 140,000 & \$ 16\end{array}$$
What would be the total annual costs at the point of indifference?

A)  $300,000
B)  $240,000
C)  $380,000
D)  $220,000
E)  $760,000