Assignment:
A firm is considering two locution alternatives: A and B. Alternative A would have an Mutual fixed cost of $250,000 and variable costs of $18 per unit. Alternative B would have annual costs of $200,000 and variable costs of $25 per unit. Revenue is expected to be $40 per unit for both locations.
(i) Develop an indifference cutoff quantity for these two locations.
(ii) Which alternative would require the lower volume of output to generate an annual profit of $50,000?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.