A Manufacturing Firm Is Considering Two Locations for a Plant

question 16

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: $$\begin{array} { l c c } \text { Location } & \text { FC (annual) } & \text { VC (per unit) } \\\hline \text { Atlanta } & \$ 80,000 & \$ 20 \\\text { Phoenix } & \$ 140,000 & \$ 16\end{array}$$
What would be the total annual costs at the point of indifference?

• A) $300,000
• B) $240,000
• C) $380,000
• D) $220,000
• E) $760,000

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Definitions:

Express Refusals

Express refusals are clear and direct declarations of denial, often communicated to decline offers, requests, or proposals.

Negative Messages

Communication that conveys bad news, rejection, or criticism, often requiring careful wording to maintain goodwill.

Phrases

Phrases are groups of words that work together as a linguistic unit, typically forming a component of sentences without a subject and predicate of their own.

Audience Alternative

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