the search тога пew reing кога р locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 6 8 10 14 16 18 20 0 (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 12P
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can a step by step be shown on how the chart lines should be plotted please

b. An operations manager has narrowed down the search for a new King Kola plant to three
locations. Fixed and variable costs follow.
Location
Fixed Cost Variable Cost
A
$100,000
$10
B
$150,000
$7
C
$200,000
$5
600
Annual 500
Cost
($000) 400
300
200
100
6
8 10 14 16 18 20
0 (000s of units)
i. Plot the total cost curves in the chart provided above and identify the range over which
each location would be best.
ii. Use break-even analysis to calculate exactly the break-even quantity that defines each
range.
Transcribed Image Text:b. An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 6 8 10 14 16 18 20 0 (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.
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