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Darren"s Custom Guitars has narrowed its potential choices for its new manufacturing facility to four cities. The following information is known about each of these four cities:
Fixed Costs per Year
Variable Costs per Unit
a. Use breakeven point analysis to determine where Darren should locate.
b. Based solely on breakeven quantity, if Darren"s manufacturing forecast for the foreseeable future is 40,000 units annually.
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