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The soft toys company has collected information on fixed

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. Compute the range of demand for which each location has a cost advantage.

b. Which plant location is best if demand is 30,000 units?

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