A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below.
a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.
$$\begin{array} { | l | r | r | r | }
\hline & { \text { A } } & { \text { B } } &{ \text { C } } \
\hline \text { Fixed cost } & 270000 & 245000 & 30000 \
\hline \text { Variable cost } & 23 & 26 & 20 \
\hline
\end{array}$$

Question

A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below.
a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.
 $$\begin{array} { | l | r | r | r | } 
\hline &  { \text { A } } & { \text { B } } &{ \text { C } } \
\hline \text { Fixed cost } & 270000 & 245000 & 30000 \
\hline \text { Variable cost } & 23 & 26 & 20 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below.
a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.
 $$\begin{array} { | l | r | r | r | } 
\hline &  { \text { A } } & { \text { B } } &{ \text { C } } \
\hline \text { Fixed cost } & 270000 & 245000 & 30000 \
\hline \text { Variable cost } & 23 & 26 & 20 \
\hline
\end{array}$$

A Manufacturing Company Preparing to Build a New Plant Is