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Homework answers / question archive / AFour Company decides to produce and sell food blenders and is considering three different types of production facilities ("plants”)

AFour Company decides to produce and sell food blenders and is considering three different types of production facilities ("plants”)

Economics

AFour Company decides to produce and sell food blenders and is considering three different types of production facilities ("plants”). Plant A is a labor-intensive facility, employing relatively little specialized capital equipment. Plant B is a semi-automated facility that would employ less labor than A but would also have higher capital equipment costs. Plant C is a completely automated facility using much more high-cost, high-technology capital equipment and even less labor than B. Information about the operating costs and production capacities of these three different types of plants is shown in the following table. PLANT A PLANT B PLANT C UNIT VARIABLE COST $9 $8 $7 TOTAL FIXED COST $ 150,000 $ 250,000 $450,000 ANNUAL CAPACITY 75,000 150,000 350,000 Determine the average total cost schedules for each plant type to fill empty columns of the following table. (1 mark each) Note: If necessary, round to two decimal places. SHORT-RUN AVERAGE TOTAL COST (SRATC) OUTPUT (Q) PLANTA PLANT B PLANT C Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answ
Question Completion Status: TOITLITLD CUJT PTJU, VO Pzuo,vou PTJO,00 ANNUAL CAPACITY 75,000 150,000 350,000 Determine the average total cost schedules for each plant type to fill empty columns of the following table. (1 mark each) Note: If necessary, round to two decimal places. SHORT-RUN AVERAGE TOTAL COST (SRATC) OUTPUT (Q) PLANT A PLANT B PLANT C 50,000 100,000 I 150,000 200,000 250,000 Τ Τ Τ Arial HBC 3 (12pt) T-E- E Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All

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