Multiple Choice
Excel Products is planning a new warehouse to serve the Southeast.Locations A,B,and C are under consideration.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 as necessary to calculate exactly the break-even quantity that defines each range.
Which of the following statements is correct?
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 $7,000,000.
D) The break-even quantity between A and B is more than 75,000 units but less than 200,000 units.
Correct Answer:

Verified
Correct Answer:
Verified
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