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Other Fields Homework Help Management Topic started by: sinnefoula on Jul 12, 2017



Title: A manufacturing company is considering three expansion options. The first is to do nothing (Option ...
Post by: sinnefoula on Jul 12, 2017
A manufacturing company is considering three expansion options. The first is to do nothing (Option A). The next is to leave the current plant open and also open a new larger plant (Option B). Finally they could close the existing plant and open the new, larger one (Option C). Given the variable costs (VC) and fixed costs (FC) from the table below, calculate the range for which each option minimizes cost.

Option   FC ($)   VC ($/unit)
A   50000   2
B   100000   1
C   60000   1.4


Title: Re: A manufacturing company is considering three expansion options. The first is to do nothing ...
Post by: Almeyric on Jul 12, 2017
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