Audi Motors is considering three sites A, B and C where to locate a factory to build its new car model, the Audi SUV XL500. The goal is to open at a least-cost site, where cost is measured by annual fixed cost plus variable production costs. Audi has compiled the following data:
The company knows it will produce between 0 and 600,000 XL500 SUVs at the new plant each year, but, so far, that is all the knowledge it has about production plans. For what production volume values, V, if any, is site C advisable?

Site A Annualized Fixed Cost Variable Cost per Automobile Produced $ 10.000.000 $ 2.500 $ 20.000.000 $ 2.000 $ 25.000.000 $ 1.000 B ?

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!