Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. LocationABCFixed Cost6000080000130000Variable Cost302010 Write an equation to represent the total costs for each location.Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.Over what range of output is location A the most preferred location?Over what range of output is location B the most preferred location?Over what range of output is location C the most preferred location?

Location Fixed Cost Variable Cost A 60000 30 B 80000 20 C 130000 10

Answered: Mr. Jack is in the process of expanding…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

See similar textbooks

Related questions

Question

Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.

Location	A	B	C
Fixed Cost	60000	80000	130000
Variable Cost	30	20	10

Write an equation to represent the total costs for each location.
Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.
Over what range of output is location A the most preferred location?
Over what range of output is location B the most preferred location?
Over what range of output is location C the most preferred location?

Expert Solution

Step by step

Solved in 5 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions