A manufacturing firm is considering two locations for a plant to produce a new product.The two locations have fixed and variable costs as follows: At what annual output would the company be indifferent between the two locations?
A)60,000 units
B)15,000 units
C)10,000 units
D)20,000 units
E)4,000 units

Question

A manufacturing firm is considering two locations for a plant to produce a new product.The two locations have fixed and variable costs as follows:  At what annual output would the company be indifferent between the two locations?
A)60,000 units 
B)15,000 units 
C)10,000 units 
D)20,000 units 
E)4,000 units

Quizplus · Accepted Answer

The Answer of A manufacturing firm is considering two locations for a plant to produce a new product.The two locations have fixed and variable costs as follows:  At what annual output would the company be indifferent between the two locations?
A)60,000 units 
B)15,000 units 
C)10,000 units 
D)20,000 units 
E)4,000 units

A Manufacturing Firm Is Considering Two Locations for a Plant