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. At what volume of output would the two locations have the same total cost?
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.)
For what range, would B be superior? (Enter your answer as a whole number. Do not include the point in your answer.)