A distribution company is considering two locations for the construction of a new automated warehouse: Chicago and Dallas. Two types of automation are also being considered: bar coding and RF/ID (radio-frequency identification). The annual operating costs for each type of automation at the two locations are: Bar CodingRF/IDLocationFixed CostVariable Cost per 1,000 unitsFixed CostVariable Cost per 1,000 unitsChicago$1,800,000$12.30$2,700,000$9.70Dallas1,500,00013.102,300,0009.40 For what range of annual product volume handled would each location and type of automation be preferred?

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Answered: A distribution company is considering…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A distribution company is considering two locations for the construction of a new automated warehouse: Chicago and Dallas. Two types of automation are also being considered: bar coding and RF/ID (radio-frequency identification). The annual operating costs for each type of automation at the two locations are:

	Bar Coding	RF/ID
Location	Fixed Cost	Variable Cost per 1,000 units	Fixed Cost	Variable Cost per 1,000 units
Chicago	$1,800,000	$12.30	$2,700,000	$9.70
Dallas	1,500,000	13.10	2,300,000	9.40