A manufacturer must choose between locating in atlanta


A manufacturer must choose between locating in Atlanta (fixed cost of $60,000 / year and variable cost of $25 per unit) or Denver (fixed cost of $80,000 / year and variable cost of $20 per unit). If the manufacturer plans to produce 5,000 units, where should they locate the facility? What is the point of indifference between the two locations (i.e., where both facilities are equal in cost)?

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Finance Basics: A manufacturer must choose between locating in atlanta
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