The Soft Toys Company has collected information on fixed and variable costs for three potential plant locations.
Location Annual Fixed Cost Unit Variable Cost
A $200,000 $50
B $300,000 $45
C $400,000 $58
a. Plot the total cost curves for the four plant locations on a single graph.
b. Compute the range of demand for which each location has a cost advantage.
c. Which plant location is best if demand is 30,000 units?