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Operations ManagementQ&A Librarynot certain how to calculate because it says each item sells for 17,000. also, I wouldnt be sure which numbers to graph with 1. A small producer of machine tools wants to move to a larger building, and has identified twoalternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 perunit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit1.The finished items sell for $17,000 each.A) State the total-cost formula:B) Calculate a second point for each location: Set a selected quantity = ____ Use q=150 units C) Sketch the total-cost lines for the locations on a single graph.Question

not certain how to calculate because it says each item sells for 17,000. also, I wouldnt be sure which numbers to graph with

1. A small producer of machine tools wants to move to a larger building, and has identified two

alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per

unit; location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit1

.

The finished items sell for $17,000 each.

A) State the total-cost formula:

B) Calculate a second point for each location: Set a selected quantity = ____ Use q=150 units

C) Sketch the total-cost lines for the locations on a single graph.

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