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The Owner of a Millwork Shop Is Considering Three Alternative

question 81

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The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Plot the total cost lines in the chart provided below, and identify the range over which each location is best.
$\begin{array} { | l | c | c | c | } \hline & { \text { Location } } \\\hline \text { Costs } & \mathrm { A } & \mathrm { B } & \mathrm { C } \\\hline \text { Fixed } & \$ 700,000 & \$ 1,000,000 & \$ 1,1000,000 \\\hline \text { Variable } & \$ 28 & \$ 18 & \$ 20 \\\hline\end{array}$
$The owner of a millwork shop is considering three alternative locations for a new plant for building embossed-and-clad steel exterior doors for residences. Fixed and variable costs follow. Since the plant ships nationwide, revenue is assumed the same regardless of plant location. Plot the total cost lines in the chart provided below, and identify the range over which each location is best. \begin{array} { | l | c | c | c | } \hline & { \text { Location } } \\ \hline \text { Costs } & \mathrm { A } & \mathrm { B } & \mathrm { C } \\ \hline \text { Fixed } & \$ 700,000 & \$ 1,000,000 & \$ 1,1000,000 \\ \hline \text { Variable } & \$ 28 & \$ 18 & \$ 20 \\ \hline \end{array}$

Definitions:

Production Career Path

A sequence of job positions in the field of production, focusing on creating goods or overseeing the manufacturing process.

Oregon Vocational Interest Scales

A psychometric instrument designed to assess an individual's vocational interests across various occupational fields.

Erudition

Gaining knowledge on many topics.

Knowledge

Information, understanding, and skills that individuals acquire through experience, education, or training.