Golden Juice is considering a new manufacturing plant either inPolk County in Central Florida or in

Golden Juice is considering a new manufacturing plant either inPolk County in Central Florida or in San Joaquin Valley inCalifornia. Fixed annual costs per year are $2M and $5M,respectively. Variable costs per ton are $500 and $300,respectively.

1) What is the best location for an expected volume of 10,000 tonsper year?

2) At which volume would Golden Juice be indifferent between thetwo locations? Attached

 
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