Please do not give solution in image format thanku QUESTION 42A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 perunit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expectedto be 10 million units, which plant offers the lowest total cost?Plant B, because it has the lower variable cost per unitPlant B, because it is cheaper than Plant A for all volumes over 8,000,000 unitsPlant A, because it is cheaper than Hant B for all volumes over 8,000,000 unitsO Plant A, because it is cheaper than Plant B for all volumes0.

The total cost is the summation of the fixed and total variable costs. Fixed costs are the costs…

Answered: Plant B, because it has the lower…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

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Plant B, because it has the lower variable cost per unit Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units Plant A, because it is cheaper than Fant B for all volumes over 8,000,000 units Plant A, because it is cheaper than Plant B for all volumes