Afirm has three different production facilities, all of which produce the same product. while reviewing the firm's cost data, jasmin, a manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing that plant. another manager, joshua, notes that the high-cost plant has high fixed costs but that the marginal cost for that plant is lower than in the other plants. he says that the high-cost plant should not be shut down but should expand its operations. who is right?

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan