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Peter Belington Stereo, Inc. supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lover due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Given the following costs-
Dallas Detroit
Fixed Costs $600,000 $800,000
Variable Costs$28/radio $22/radio
A. Perform an analysis of the volume over which each location is preferable.
B. How does your answer change if Dalla's fixed costs increase by 10%?
Neda operates a small convenience store in a southern town that has a high tourist draw. After several years of operating the store, Neda has decided to no longer sell tobacco prod
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