A retailer is deciding on the location for a new call center and has narrowed its choices down to four states, each of which has an empty mall that can be purchased and converted into an office workspace. The cost of the mall and the unit cost of each call, based on the prevailing labor and energy costs in each state, appear in the table. State Building Cost ($) Call Cost ($/call) Oklahoma 7,500,000 6 Louisiana 12,250,000 5 Arkansas 18,500,000 4 Tennessee 27,000,000 3 The CEO is from Oklahoma and wants to remain in state regardless of the cost. They believe the actual call volume will be 6 million. How much money will their decision cost the company? a. $1,500,000 b. $1,250,000 c. $0 d. $2,750,000
A retailer is deciding on the location for a new call center and has narrowed its choices down to four states, each of which has an empty mall that can be purchased and converted into an office workspace. The cost of the mall and the unit cost of each call, based on the prevailing labor and energy costs in each state, appear in the table. State Building Cost ($) Call Cost ($/call) Oklahoma 7,500,000 6 Louisiana 12,250,000 5 Arkansas 18,500,000 4 Tennessee 27,000,000 3 The CEO is from Oklahoma and wants to remain in state regardless of the cost. They believe the actual call volume will be 6 million. How much money will their decision cost the company? a. $1,500,000 b. $1,250,000 c. $0 d. $2,750,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A retailer is deciding on the location for a new call center and has narrowed its choices down to four states, each of which has an empty mall that can be purchased and converted into an office workspace. The cost of the mall and the unit cost of each call, based on the prevailing labor and energy costs in each state, appear in the table.
|
State |
Building Cost ($) |
Call Cost ($/call) |
|
Oklahoma |
7,500,000 |
6 |
|
Louisiana |
12,250,000 |
5 |
|
Arkansas |
18,500,000 |
4 |
|
Tennessee |
27,000,000 |
3 |
The CEO is from Oklahoma and wants to remain in state regardless of the cost. They believe the actual call volume will be 6 million. How much money will their decision cost the company?
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