Consider the following information about sites A, B, and C: Site A B C FC (annual) $100.000 $120.000 $150.000 VC (per unit) $10 $8 $7 For what quantity would you be indifferent between selecting site A or site B?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 12P
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Consider the following information about sites A, B, and C:

Site A B C
FC (annual) $100.000 $120.000 $150.000
VC (per unit) $10 $8 $7
For what quantity would you be indifferent between selecting site A or site B?
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Introduction

Fixed costs are the cost that remains constant through a period, say one year. Fixed costs include expenses such as rent, depreciation, amortization, etc. Variable costs include expenses that are volatile in nature such as operating expenses. variable expenses are based on various factors that are internal and external to a firm.

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