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Warehouse in one of several locations

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A national retailer is looking at putting in a warehouse in one of several locations. Each location has a fixed and variable costs listed in the table below. Management is interested in knowing which location is best but has no forecast of demand, they want to know which location is best for a given volume. You will need to find the break even points between A, B, C & D. To answer the question completely, at what values (volumes) is one location better than another.

Locations

Fixed Costs

Variable Costs

A

70,000

26

B

120,000

21

C

190,000

20

D

200,000

18

Reference no: EM131315277

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