Hyundai Motors is considering three siteslong dash—A, B, and Clong dash—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: Site Annualized Fixed Cost Variable Cost per Auto
Produced Upper A $12,000,000 $2,600
Upper B $22,000,000 $1,900
Upper C $25,000,000 $1,000
The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about
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