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The average annual investment cost of a workstation in New Jersey has been calculated to be $100,000. It has been calculated to be $150,000 in Kentucky. The hourly cost at a workstation is $60 in New Jersey and $40 in Kentucky. How do the two plants compare with respect to the cost of labor for making a car? For each location, what is the breakeven volume and what is the total cost at breakeven?
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