Over what range of production is each location optimal


The fixed and variable costs for three potential manufacturing plant sites are shown below:

Site: Fixed Cost Yrly: Variable Cost Yrly:

Texarkana $500 $11
Fort Smith $1,000 $7
Tulsa $1,700 $4

a) Over what range of production is each location optimal?

b) For a production of 200 units, which site is best?

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