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: $$\begin{array} { l c c }
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
A) $280,000
B) $140,000
C) $220,000
D) $300,000
E) $156,000

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: $$\begin{array} { l c c } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
A) $280,000
B) $140,000
C) $220,000
D) $300,000
E) $156,000

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: $$\begin{array} { l c c } 
\text { Location } & \mathrm { FC } \text { (annual) } & \mathrm { VC } \text { (per unit) } \
\hline \text { Atlanta } & \$ 80,000 & \$ 20 \
\text { Phoenix } & \$ 140,000 & \$ 16
\end{array}$$ What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
A) $280,000
B) $140,000
C) $220,000
D) $300,000
E) $156,000

A Manufacturing Firm Is Considering Two Locations for a Plant