Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below. Identify the range over which each alternative (A, B and C) is best.

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
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Sap Manufacturing, a manufacturing company that manufactures football jerseys and located in Port Antonio, Jamaica, is preparing to build a new plant. J’s is considering three potential locations that are suitable for the construction of the plant. The fixed and variable costs for the three alternative locations are presented in the table below.

Identify the range over which each alternative (A, B and C) is best.

Table 4
Costs
A
B
C
Fixed Costs ($)
700,000
1, 000,000
1,100,000
18
Variable ($ per unit)
28
20
Transcribed Image Text:Table 4 Costs A B C Fixed Costs ($) 700,000 1, 000,000 1,100,000 18 Variable ($ per unit) 28 20
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9780357033791
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