What volume of output would two locations have total cost

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A small 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?

Reference no: EM131138361

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