Variable costs per case are 75 45 25 and 5 respectively, Operation Management

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Variable costs per case are 75 45 25 and 5 respectively

You're considering a new manufacturing plant in Location LA, LB, LC, and LD. For production, fixed costs per year are $30k, $60k, $1 10k, and $200k respectively.

Variable costs per case are $75, $45, $25, and $5 respectively. Completed cases can be sold with a selling price of $220 per case.

What are the ranges in demand for which each location will be most economical?

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Operation Management: Variable costs per case are 75 45 25 and 5 respectively

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Operation Management: Variable costs per case are 75 45 25 and 5 respectively

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