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Determine the memphis total costs

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Question - A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $45,000 for Memphis, $55,000 for Biloxi, and $90,000 for Birmingham. Labor and materials are expected to be $5 per unit in Memphis, $3 per unit in Biloxi, and $3 per unit in Birmingham. The Memphis location would increase system transportation costs by $44,000 per year, the Biloxi location by $54,000 per year, and the Birmingham location by $24,000 per year. Expected annual volume is 13,000 units.

Required -

1. Determine the Memphis Total costs?

2. Determine the Biloxi Total Cost?

3. Determine the Memphis Total Cost?

Reference no: EM133133766

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