- Site A B C Annualized Fixed Cost 10 000 000 20 000 000 25 000 000 Variable Cost Per Auto Produced 2500 2000 1000 T 1 (92.3 KiB) Viewed 37 times
Site A B C Annualized Fixed Cost $10 000 000 $20 000 000 $25 000 000 Variable Cost per Auto Produced $2500 $2000 $1000 T
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Site A B C Annualized Fixed Cost $10 000 000 $20 000 000 $25 000 000 Variable Cost per Auto Produced $2500 $2000 $1000 T
Site A B C Annualized Fixed Cost $10 000 000 $20 000 000 $25 000 000 Variable Cost per Auto Produced $2500 $2000 $1000 The firm knows it will produce between 0 and 60 000 SUV XL500s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) For what values of volume, V, of production, if any, is site Ca recommended site? b) What volume indicates site A is optimal? c) Over what range of volume is site B optimal? Why? P