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Business
Operations Management
Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit

Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Quick Copy center for document copying is deciding
where to locate a new facility. Th e annual fi xed and variable costs
for each site it is considering have been estimated as follows:

If demand is expected to be 3000 units, which location is best?

Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit
Transcribed Image Text:Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit
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