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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?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92681859

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