The Operations Manager Has Narrowed Down the Search for a New

Multiple Choice

The operations manager has narrowed down the search for a new plant to three locations.Fixed and variable costs follow: Plot the total cost curves in the chart provided below,and identify the range over which each location would be best.Then use break-even analysis to calculate exactly the break-even quantity that defines each range. Which of the following statements is correct?

A) Location C is the best one if volumes are quite low.
B) The break-even quantity between B and C is less than or equal to 6000 units.
C) The break-even quantity between A and B is less than or equal to 9170 units.
D) The break-even quantity between A and B is more than 9170 units but less than 9270 units.