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What would be the cost advantage of the better location

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Question - 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:

Location FC (annual) VC (per unit)

Atlanta $80,000 $20

Phoenix $140,000 $16

If the annual demand will be 20,000 units, what would be the cost advantage of the better location? HINT: Compare the total costs.

Reference no: EM132570865

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