A Manufacturing Firm Is Considering Two Locations for a Plant

question 22

Multiple Choice

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

• A)$280,000
• B)$140,000
• C)$220,000
• D)$300,000
• E)$156,000

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Definitions:

Alkyl Bromides

Organic compounds containing a bromine atom covalently bonded to an alkyl group, often used in organic synthesis and as intermediates in the production of other chemicals.

Aqueous Methanol

Methanol (CH3OH) dissolved in water, creating a solution used in various chemical processes and applications.

Solvolysis

A type of substitution reaction in which the solvent acts as the nucleophile, attacking a saturated carbon, leading to the replacement of a leaving group.

Reactivity

The tendency of a substance to undergo a chemical reaction, either by itself or with other materials, under certain conditions.