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Question & Answer: Hyundai Motors is considering three sites A, B and C to build the Sport C150 model…..

Question2 (Text 8.16) Hyundai Motors is considering three sites A, B and C to build the Sport C150 model. FIXED COST (S) VARIABLE COST PER CAR PRODUCED (S) 2 500 2 000 SITE 10 000 000 20 000 000 25 000 000 1000 Fixed and variable costs associated with each site are shown above and the company will produce a maximum of 60 000 cars per year. Answer the following: For what annual production volume is site C recommended (if applicable)? What volume would suggest that site A is preferred? For what range of production is site B optimal? a. b. c.

Hyundai Motors is considering three sites A, B and C to build the Sport C150 model. Fixed and variable costs associated with each site are shown above and the company will produce a maximum of 60 000 cars per year. Answer the following: a. For what annual production volume is site C recommended (if applicable)? b. What volume would suggest that site A is preferred? c. For what range of production is site B optimal?

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