A rapidly expanding company is looking to lease a small plant in Memphis, Tennessee, Biloxi, Mississippi, or Birmingham, Alabama. Prepare a cost benefit study for each of the three locations using the following data: The annual construction, facilities, and administration expenses for Memphis, Biloxi, and Birmingham will be $40,000, $60,000, and $100,000, respectively. In Memphis, labour and materials are estimated to cost $8 per month, $4 in Biloxi, and $5 in Birmingham. The Memphis site would add $50,000 a year to device transportation expenses, the Biloxi location would add $60,000 per year, and the Birmingham location would add $25,000 per year. The annual production is expected to be 10,000 units
A rapidly expanding company is looking to lease a small plant in Memphis, Tennessee, Biloxi, Mississippi, or Birmingham, Alabama. Prepare a cost benefit study for each of the three locations using the following data: The annual construction, facilities, and administration expenses for Memphis, Biloxi, and Birmingham will be $40,000, $60,000, and $100,000, respectively. In Memphis, labour and materials are estimated to cost $8 per month, $4 in Biloxi, and $5 in Birmingham. The Memphis site would add $50,000 a year to device transportation expenses, the Biloxi location would add $60,000 per year, and the Birmingham location would add $25,000 per year. The annual production is expected to be 10,000 units
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A rapidly expanding company is looking to lease a small plant in Memphis, Tennessee, Biloxi, Mississippi, or Birmingham, Alabama. Prepare a cost benefit study for each of the three locations using the following data: The annual construction, facilities, and administration expenses for Memphis, Biloxi, and Birmingham will be $40,000, $60,000, and $100,000, respectively. In Memphis, labour and materials are estimated to cost $8 per month, $4 in Biloxi, and $5 in Birmingham. The Memphis site would add $50,000 a year to device transportation expenses, the Biloxi location would add $60,000 per year, and the Birmingham location would add $25,000 per year. The annual production is expected to be 10,000 units.
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