Determining which site is preferable

Reference no: EM131854961

Question: Your company is considering expanding into the Sun Belt. Your industry is heavily dependent on water transportation, so the preliminary research has narrowed the location to three sites near port facilities in Memphis, New Orleans, and St. Louis. On the basis of the following data, which site is preferable? Show your computations.

Relevant Factors	Memphis	New Orleans	St. Louis
Variable cost per unit	$1.80	$2.00	$1.95
fixed cost/year	$150,000	$300,000	$400,000
price per unit	$3.00	$3.00	$3.00
volume (units/year)	300,000	250,000	325,000

Reference no: EM131854961

Questions Cloud

How a bitcoin transaction works : How a Bitcoin Transaction works: What's a Transaction in Bitcoin? UTXOs Unspent Transaction Outputs are the fundamental building block of a transaction output.

How much were the sandals sold : A store advertises a discount of $54.72 on sandals. If the discount is 33.5%, for how much were the sandals sold?

What will be the loan EAR : You want to buy a car, and a local bank will lend you $10,000. What will be the monthly loan payment? What will be the loan's EAR?

Authorize the interception of wire : In 2008, there were a total of 1,891 applications to federal and state judges to authorize the interception of wire, oral, or electronic communications.

Determining which site is preferable : Your company is considering expanding into the Sun Belt. Your industry is heavily dependent on water transportation, so the preliminary research has narrowed.

What will be the cost for 11 watermelons : If 2 watermelons cost $3.89, what will be the cost for 11 watermelons (assuming an equal rate)? Round your answer to the nearest penny

Why did you plot your response where you did : A company is making facial tissues. What type of inspection plan would you recommend as the tissues are being manufactured.

Rectangular enclosure with fencing : You have $6000 with which to build a rectangular enclosure with fencing. The fencing material costs $30 per meter.

What is the total annual cost based on your optimal lot size : Your company manufactures bowling balls in Akron, Ohio. The primary raw material is polyurethane that you order from suppliers.

User Account

All Pages