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Location Cost Volume Analysis
Location
Fixed Cost per Year
Variable Cost per Unit
A
$250,000
$11
B
100,000
30
C
150,000
20
D
200,000
35
Give the above information
Identify the range of output for which each alternative is superior (i.e. has the lowest total cost)
If the expected output at the selected location is to be 8,000 units per year, which location would provide the lowest total cost?
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