An operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs follow.
Plot the total cost curves in the chart provided and identify the range over which each location would be best. Then use break-even analysis to calculate exactly the break-even quantity that defines each range.
Which of the following statements is correct?
◦ Location C is the best one if volumes are quite low.
◦ The break-even quantity between C and B is more than 3000 units.
◦ Location A becomes the most expensive place to produce at volumes in excess of 2000.
◦ The break-even quantity between A and B is less than or equal to 500 units.
Plant Cell Types (Part 3)
Plant
Plant
Plant
Plant
Most Plant Foods Contain Both Soluble and Insoluble Fibers