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Considering two location alternatives

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A firm is considering two location alternatives. At location A,fixed costs would be $4,000,000 per year, and variable costs would be $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable coss of $0.35 per unit. Which plant is less expensive at a volume of 8,000,000 units per year? What is the crossover point (annual volume) at which one plant is less expensive than the other?

Reference no: EM132735985

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