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Q4) 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.   Populate the relevant data using your group number Complete a numeric locational cost-volume Indicate over what range each of the alternatives A, B, C is the low-cost choice. Is any alternative never preferred?   Costs A B C Fixed ($) 2,500,000 2,000,000 3,500,000 Variable ($ per unit) 20+13 23+13 15+13

Q4) 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.   Populate the relevant data using your group number Complete a numeric locational cost-volume Indicate over what range each of the alternatives A, B, C is the low-cost choice. Is any alternative never preferred?   Costs A B C Fixed ($) 2,500,000 2,000,000 3,500,000 Variable ($ per unit) 20+13 23+13 15+13

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Q4) 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.

 

  • Populate the relevant data using your group number
  • Complete a numeric locational cost-volume
  • Indicate over what range each of the alternatives A, B, C is the low-cost choice.
  • Is any alternative never preferred?

 

Costs

A

B

C

Fixed ($)

2,500,000

2,000,000

3,500,000

Variable ($ per unit)

20+13

23+13

15+13
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