If this facility will produce 15,000 units annually, where should you locate it? O A. Niagara Falls B. Singapore O C. either Hong Kong or Niagara Falls O D. Hong Kong O E. either Singapore or Niagara Falls

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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You are trying to decide which of the following three cities in which to locate a new manufacturing
facility, and you have gathered the following information about each:
City
Annual Fixed Cost
Variable Cost (per unit)
Singapore
$30,000
$2
Hong Kong
$20,000
$3
Niagara Falls
$10,000
$6
If this facility will produce 15,000 units annually, where should you locate it?
O A. Niagara Falls
O B. Singapore
C. either Hong Kong or Niagara Falls
O D. Hong Kong
O E. either Singapore or Niagara Falls
Transcribed Image Text:You are trying to decide which of the following three cities in which to locate a new manufacturing facility, and you have gathered the following information about each: City Annual Fixed Cost Variable Cost (per unit) Singapore $30,000 $2 Hong Kong $20,000 $3 Niagara Falls $10,000 $6 If this facility will produce 15,000 units annually, where should you locate it? O A. Niagara Falls O B. Singapore C. either Hong Kong or Niagara Falls O D. Hong Kong O E. either Singapore or Niagara Falls
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