Location annual-fixed cost unit-variable cost

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Reference no: EM13778777

The Soft Toys Company has collected information on fixed and variable costs for three potential plant locations.

Location Annual Fixed Cost Unit Variable Cost

A             $200,000               $50

B             $300,000               $45

C             $400,000               $58

a. Compute the range of demand for which each location has a cost advantage.

b. Which plant location is best if demand is 30,000 units?

Reference no: EM13778777

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