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C&A identifies two location alternatives. Chicago has annual fixed costs of $20,000 and variable costs of $50 per unit. New York has annual fixed costs of $55,000 and variable costs of $100 per unit. For what range of output would New York be superior?
New York is not an option
Less than 700
More than 700
Less than 701
More than 701
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The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling.
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