A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:
| Location | Fixed cost | variable cost |
| Atlanta | $83,000 | $27/unit |
| Phoenix | $132,000 | $18/unit |
Which alternative will have lower cost when they plan to produce 50,000 units of product per year
Atlanta
Both of them have almost same cost
Phoenix
Can not be decided
Complete Answer:
