QUESTION 21. Mr. Jack is in the process of expanding his manufacturing business. He decided to opena plant in the coming year. He has four locations in mind. The costs information forthese locations is in the following table.LocationsFixed CostsVariableCosts/unita.i.ii.iii.A60,00030B80,00020с100,00015D130,00010Write an equation to represent the total costs for each location.Draw the total costs lines for each location on the same axes. (Use output rangesof 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.Over what range of output is location A the most preferred location?

Total cost=Fixed cost + Variable cost per unit × number of units

Answered: 1. Mr. Jack is in the process of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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