Considering three potential locations for its warehouses

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C&A is considering three potential locations for its warehouses. Lexington, Chicago and Madison. Lexington involved a fixed cost of $4,000 per month and a variable cost of $4 per unit; Chicago involves a fixed cost of $3,000 per month and a variable cost of $5 per unit; Madison involves a fixed cost of $4,500 per month and a variable cost of $6 per unit. Use of the Lexington location increases transportation costs by $19,000 per month. Chicago by $22,000 a month and Madison by $18,000 per month. Which location will you choose if demand is expected to be 800 units per month?

Reference no: EM131783124

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