i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below: a. How much is the annual sales volume (box)  for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below:

a. How much is the annual sales volume (box)  for each area to be able to compete on a competitive advantage strategy with competitors?

b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.

COSTbоx
FIXED COST/year
MATERIAL
LABOR
OVERHEAD
Location
(S)
($)
(S)
(S)
Теxas
200.000
0,10
0,40
0,5
Chicago
New York
180.000
0,25
0,75
0,50
170.000
0,5
1,00
1,00
Transcribed Image Text:COSTbоx FIXED COST/year MATERIAL LABOR OVERHEAD Location (S) ($) (S) (S) Теxas 200.000 0,10 0,40 0,5 Chicago New York 180.000 0,25 0,75 0,50 170.000 0,5 1,00 1,00
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