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SAT, 28.12.2021 07:20 audrey1256

A firm is considering two locations. At location a, fixed costs would be $4,000,000 per year, and variable costs of $0. 30 per unit. At alternative b, fixed costs would be $3,600,000 per year, with variable costs of $0. 35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost?.

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