
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Transcribed Image Text:A manufacturing firm is considering two locations for a plant to produce a new
product. Location A has a fixed cost of $80,000 and a variable cost of $20 per unit.
Location B has a fixed cost of $120,000 and a variable cost of $15 per unit. What is
the firm's point of indifference between these locations?
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