Texas Seasonings is considering three alternative locations for a new plant for producing its seasoning. Below are the associated fixed and variable costs. Assume the revenue is the same regardless of plant location. Which location will never be preferred, and why?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
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Texas Seasonings is considering three alternative locations for a new plant for producing its seasoning. Below are the associated fixed and variable costs. Assume the revenue is the same regardless of plant location. Which location will never be preferred, and why?

Costs
Fixed
Variable
A
$700,000
$28
Location
B
$1,000,000
$1,000,000
$18
C
$1,100,000
$20
Transcribed Image Text:Costs Fixed Variable A $700,000 $28 Location B $1,000,000 $1,000,000 $18 C $1,100,000 $20
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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing