A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for each alternative location are presented below

Costs A B C

Fixed ($) 2,000 3,000 4,000

Variable ($ per unit) 40 25 18

1. The cost functions for all three options are:

2.Location A is the best (low cost) option for production volumes between:

3. Location B is the best (low cost) option for production volumes between:

4.Location C is the best (low cost) option for production volumes between:

5. If the variable cost for Location C increases to $30, can option C still be an option? Explain.