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a.) For what values of volume, V, of production, if any, is site C a recommended site? b.) What volume indictates site A is optimal? c.) Over what range of volume is site B optimal? Why? d.) Create a graph with all the points and sites.

a.) For what values of volume, V, of production, if any, is site C a recommended site? b.) What volume indictates site A is optimal? c.) Over what range of volume is site B optimal? Why? d.) Create a graph with all the points and sites.

Practical Management Science
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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a.) For what values of volume, V, of production, if any, is site C a recommended site? b.) What volume indictates site A is optimal? c.) Over what range of volume is site B optimal? Why? d.) Create a graph with all the points and sites.
Transcribed Image Text:a.) For what values of volume, V, of production, if any, is site C a recommended site? b.) What volume indictates site A is optimal? c.) Over what range of volume is site B optimal? Why? d.) Create a graph with all the points and sites.
Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $2,400 B $11,000,000 $20,000,000 $30,000,000 $2,100 C $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.
Transcribed Image Text:Hyundai Motors is considering three sites-A, B, and C-at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto Produced A $2,400 B $11,000,000 $20,000,000 $30,000,000 $2,100 C $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans.
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