A manufacturing company is considering three expansion options. The first is to do nothing (Option
A). The next is to leave the current plant open and also open a new larger plant (Option
B). Finally, they could close the existing plant and open the new, larger one (Option
C). Given the variable costs (V
C) and fixed costs (F
C) from the table below, calculate the range for which each option minimizes cost.

Question

A manufacturing company is considering three expansion options. The first is to do nothing (Option
A). The next is to leave the current plant open and also open a new larger plant (Option 
B). Finally, they could close the existing plant and open the new, larger one (Option 
C). Given the variable costs (V
C) and fixed costs (F
C) from the table below, calculate the range for which each option minimizes cost.

Quizplus · Accepted Answer

The Answer of A manufacturing company is considering three expansion options. The first is to do nothing (Option
A). The next is to leave the current plant open and also open a new larger plant (Option 
B). Finally, they could close the existing plant and open the new, larger one (Option 
C). Given the variable costs (V
C) and fixed costs (F
C) from the table below, calculate the range for which each option minimizes cost.

A Manufacturing Company Is Considering Three Expansion Options