Balfour’s is considering building a plant in one of three possible locations. They have estimated the following parameters for each location: Location Fixed Cost Variable Cost Waco, Texas $300,000 $5.75 Tijuana, Mexico $800,000 $2.75 Fayetteville, Arkansas $100,000 $8.00 For what unit sales volume should they choose each location?
Balfour’s is considering building a plant in one of three possible locations. They have estimated the following parameters for each location: Location Fixed Cost Variable Cost Waco, Texas $300,000 $5.75 Tijuana, Mexico $800,000 $2.75 Fayetteville, Arkansas $100,000 $8.00 For what unit sales volume should they choose each location?
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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Balfour’s is considering building a plant in one of three possible locations. They have estimated the following parameters for each location:
|
Location |
Fixed Cost |
Variable Cost |
|
Waco, Texas |
$300,000 |
$5.75 |
|
Tijuana, Mexico |
$800,000 |
$2.75 |
|
Fayetteville, Arkansas |
$100,000 |
$8.00 |
For what unit sales volume should they choose each location?
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