The owner of a millwork shop is considering three


The owner of a millwork shop is considering three alternative locations for a new plant for building embossed and clad steel exterior doors for residences. fixed and variable costs follow. since the plant ships nationwide, revenue is assumed the same regardless of plant location. identify the range over which each location is best. Location (unit: $1000) Costs A. Fixed $700 Variable $28 Costs B Fixed $1000 Variable $18 Costs C Fixed $1100 Variable $20 Costs D Fixed $1200 Variable $30 Step 1. Formulate Total Cost functions for each option. Step 2 Draw a graph with total cost functions. Step 3 Compute all meaningful cross over points to make location decisions. Your goal is to minimized the total costs according to the volume of products in this analysis. Step 4 Analyze the cased and determine the best option for specific quantity ranges. (Please state which option is preferred in a quantity range and which option is never preferred.

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