Find locations for a plant to produce a new product, Operation Management

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A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Site Fixed Cost (Annual) Variable Cost (per unit) A $100,000 $10 B $120,000 $8 C $150,000 $7 a) For what quantity would there be indifferent between selecting site A or site B? b) For what range of output would you prefer site C? c) Which site would you prefer for a quantity of 20,000 units per year? What would be your total cost? Please provide formulas with answers for rating!


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