Answered: Location Fixed Costs Variable Costs…

Business

Operations Management

Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit

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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Question

The Quick Copy center for document copying is deciding
where to locate a new facility. Th e annual fi xed and variable costs
for each site it is considering have been estimated as follows:

If demand is expected to be 3000 units, which location is best?

Location
Fixed Costs
Variable Costs
$85,000
$49,000
A
$2/unit
B
$7/unit
C
$35,000
$10/unit
D
$65,000
$6/unit

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