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Problem 8-3 (Algo) A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $210,000 and variable costs of $16,000 per unit; location B has annual fixed costs of $410,000 and variable costs of $12,000 per unit. The finished items sell for $22,000 each. a. At what volume of output would the two locations have the same total cost? Volume of output units b-1. For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output O to b-2. For what range would B be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output or more
Problem 8-3 (Algo) A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual fixed costs of $210,000 and variable costs of $16,000 per unit; location B has annual fixed costs of $410,000 and variable costs of $12,000 per unit. The finished items sell for $22,000 each. a. At what volume of output would the two locations have the same total cost? Volume of output units b-1. For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output O to b-2. For what range would B be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) Range of output or more
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