Solution-What is the point of indifference between the two

What is the point of indifference between the two locations

Reference no: EM131173489

A manufacturer must choose between locating in Atlanta (fixed cost of $60,000 / year and variable cost of $25 per unit) or Denver (fixed cost of $80,000 / year and variable cost of $20 per unit). If the manufacturer plans to produce 5,000 units, where should they locate the facility? What is the point of indifference between the two locations (i.e., where both facilities are equal in cost)?

Reference no: EM131173489

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What is the point of indifference between the two locations

Reference no: EM131173489

Reference no: EM131173489

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