Please answer the questions c. The manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to builda new facility to do so. There are three possible locations for this facility. The fixed and variable costs involvedare given in the table below:-LocationsCostsABCFixed500,000600,000800,00020Variable4030i. Based on costs, over what range of units will location A be preferred?ii. Based on costs, over what range of units will location B be preferred?iii. Based on costs, over what range of units will location C be preferred?N.B. Show all working.

c. The manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved are given in the table below:- Locations Costs Fixed A B C 500,000 600,000 800,000 20 Variable 40 30 ii. i. Based on costs, over what range of units will location A be preferred? Based on costs, over what range of units will location B be preferred? iii. Based on costs, over what range of units will location C be preferred? N.B. Show all working.

c. The manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved are given in the table below:- Locations Costs Fixed A B C 500,000 600,000 800,000 20 Variable 40 30 ii. i. Based on costs, over what range of units will location A be preferred? Based on costs, over what range of units will location B be preferred? iii. Based on costs, over what range of units will location C be preferred? N.B. Show all working.

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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Question

Please answer the questions

c. The manager of a car soft drinks facility wants to expand its operations in the coming year. He wants to build
a new facility to do so. There are three possible locations for this facility. The fixed and variable costs involved
are given in the table below:-
Locations
Costs
A
B
C
Fixed
500,000
600,000
800,000
20
Variable
40
30
i. Based on costs, over what range of units will location A be preferred?
ii. Based on costs, over what range of units will location B be preferred?
iii. Based on costs, over what range of units will location C be preferred?
N.B. Show all working.

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