Range of demand for which each location has a cost advantage

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Reference no: EM13778755

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. Plot the total cost curves for the four plant locations on a single graph.

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

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

Reference no: EM13778755

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