Solution-Reallocating production between two plants

Reallocating production between two plants

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Reference no: EM131221387

Suppose you are a consultant to a firm that has two production facilities (A and B), both of which produce the same product. An accountant provides you with the following cost data:

Q^A,000 Q^B,000

TC^A=$900,000 TC^B=$570,000

ATC^A=$22.50 ATC^B=$19.00

MC^A=$8.00 MC^B=$12.00

Given these data, how, if at all, would you recommend reallocating production between these two plants? Briefly explain why.

Reference no: EM131221387

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Reallocating production between two plants

Reference no: EM131221387

Reference no: EM131221387

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