Business, 28.11.2019 04:31 Imsofrie8111

Afirm is considering two location alternatives. at location a, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. at alternative b, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. if annual demand is expected to be 10 million units, which plant offers the lowest total cost? a) plant a, because it is cheaper than plant b for all volumes over 8,000,000 units b) plant b, because it is cheaper than plant a for all volumes over 8,000,000 units. c) plant a, because it is cheaper than plant b for all volumes d) plant b, because it has the lower variable com per unit e) neither plant a nor plant b, because (he crossover point is at 10 million units.

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Afirm is considering two location alternatives. at location a, fixed costs would be $4,000,000 per y...