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Sagot :
The volume of production that illustrates that site C is a recommended site is 10000 automobiles.
How to calculate the production?
The total cost of A will be:
= 2500x + 10000000
The total cost for B will be:
= 2000x + 20000000
The total cost for C will be:
= 1000x + 250000
The volume, V, of production, if site C is a recommended site. The value will be:
2500x + 10000000 = 1000x + 25000000
2500x - 1000x = 25000000 - 10000000
1500x = 15000000
x = 15000000/1500
x = 10000 automobiles
The volume indicates site A is optimal is also 10000 automobiles.
In conclusion, sure B would not be attractive at any volume of production as the costs will be higher than the cost of site A.
Learn more about production on:
brainly.com/question/2601596
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