Asmall producer of machine tools wants to move to a larger building, and has identified two alternatives. location a has annual fixed costs of $125,000 and variable costs of $16,000 per unit; location b has annual fixed costs of $325,000 and variable costs of $15,000 per unit. the finished items sell for $18,000 each.

1. at what volume of output would the two locations have the same total cost?
2. for what range of output would location a be superior?
3. for what range would b be superior?