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A firm is considering three different locations in which to build a factory. The costs associated with each location are given below. Location A B C Fixed Costs 500 700 900 Variable costs per unit 10 6 4 Plot the crossover chart for the locations. What level of output will each location be preferred? Write an equation to represent the costs for each location.

A firm is considering three different locations in which to build a factory. The costs associated with each location are given below. Location A B C Fixed Costs 500 700 900 Variable costs per unit 10 6 4 Plot the crossover chart for the locations. What level of output will each location be preferred? Write an equation to represent the costs for each location.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A firm is considering three different locations in which to build a factory. The costs associated with each location are given below.

Location A B C
Fixed Costs 500 700 900
Variable costs per unit 10 6 4
  1. Plot the crossover chart for the locations.
  2. What level of output will each location be preferred?
  3. Write an equation to represent the costs for each location.
  4. Use algebra to determine the crossover points.
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