A manufacturing company preparing to build a new plant is


A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below. a. C b. Plot a graph of break-even analysis and based on this graph, indicate over what range each of the alternatives A, B, C is the low-cost choice. c. Based on the graph, is any alternative never preferred? Explain. Costs A B C Fixed ($) 2,200,000 2,000,000 4,500,000 Variable ($ per unit) 22 26 19

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