Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaperland costs, but the variable costs in Dallas are higher because shipping distances would increase.Dallas$600,000$27/radioDetroit$840,000$21/radioa) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above 40,000b) Dallas's fixed costs have increased by 10%. Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best aboveFixed costsVariable costsradiosradios

A complete study of potential locations for business activities is required for location breakdown…

Answered: Peter Billington Stereo, Inc., supplies…

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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Please solve correctly in 1 hour and get the thumbs up please show neat and clean work please provide correct solution
SIA Cargo flies to many destinations overseas such as Sharjah in the United Arab Emirates. Suggest three (3) main factors that you think can affect the choice of airports that SIA Cargo serves. Give reasons to support your answer.
A small firm produces and sells novelty items in a five-barangay area. The firm expects to consolidate assembly of its greeting cards line at a single location. Currently, operations are in three widely scattered locations. The leading candidate for location will have a monthly fixed cost of Php42, 000 and variable costs of Php3 per card. Cards sell for Php7 each. Prepare a table that shows total profits, fixed costs, variable costs, and revenues for monthly volumes of 10,000, 12,000, and 15,000 units. What is the break-even point?
center of gravity destination coordinates and shipment load: monthly quantity destination x quiapo 200 intramuros 10 10 180 tondo 16 4 210 center of gravity is at coordinates (1 decimal) example: 21.1,8.1 (no spaces) 08.
We have four major customers, and want to find the location that minimizes the average distance traveled to deliver products to them. Customer X coord Y coord Demand A 10 10 100 B 15 40 20 C 35 12 20 D 38 40 150 What is the optimal X coordinate for our location?
ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs. . If total fixed cost = 40000 AVC = 20 Price per unit = 10 Break even point = 40000 / 20 - 10= 4000 So at the 4000 units of production, there will be no profit and loss as the total revenue is equal to the total cost. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above.
Lancelot’s Barbecue makes its sauce using an old family recipe. Due to overwhelming response on its Instagram account in January 2020, it decides to sell directly to the public and is considering four locations. Two months later, the world shuts down due to the Covid-19 pandemic and Lancelot’s fails to produce a single bottle of its sauce. Which location would have been ideal for making no sauce? Cost Data Abilene Beaumont Conroe Dalhart Fixed costs $180,000 $220,000 $235,000 $265,000 Direct material cost per unit $10.50 $10.00 $10.00 $9.25 Direct labor cost per unit $3.90 $4.00 $2.75 $3.45 Overhead per unit $1.10 $1.00 $1.50 $1.20 Transportation cost per unit $1.10 $0.80 $1.25 $0.90 a. Dalhart b. Beaumont c. Conroe d. Abilene
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Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Location Annual fixed cost Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs? Thank you!!!
Sports of All Sorts produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angeles facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or DCs (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Factory/DCs Detroit Los Angeles Austin 1 2 3 Retailers/DCs Just Sports Sports 'N Stuff Iowa The Sports Dude 25.00 35.00 40.00 8 9 4 1 Shipping Costs ($ per skateboard) Iowa 30.00 27.50 Maryland 30.00 25.00 4 45.00 40.00 Skateboards are then shipped from the distribution centers to retailers. Sports of All Sorts supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports…
A larger and more modern main post office is to be constructed at a new location in Davis, California. Growing suburbs caused a shift in the population density from where it was 40 years ago, when the current facility was built. Annette Werk, the postmaster, asked her assistants to draw a grid map of the seven points where mail is picked up and delivered in bulk. The coordinates and trips per day to and from the seven mail source points and the current main post office, M, are shown in the following table. M will continue to act as a mail source point after relocation. Mail Source Point Round trips per day x, y, Coordinates (miles) 1 4 (4, 6) 7 (8, 4) (3, 14) (6, 10) (12, 11) (13, 5) (13, 6) (14, 10) 3 1 4 11 7 3 7 3 M 8 a. Calculate the center of gravity as a possible location for the new facility. (Enter your responses rounded to the nearest whole number.) The center of gravity "X" coordinate = The center of gravity "Y" coordinate =
b. An operations manager has narrowed down the search for a new King Kola plant to three locations. Fixed and variable costs follow. Location Fixed Cost Variable Cost A $100,000 $10 B $150,000 $7 C $200,000 $5 600 Annual 500 Cost ($000) 400 300 200 100 6 8 10 14 16 18 20 0 (000s of units) i. Plot the total cost curves in the chart provided above and identify the range over which each location would be best. ii. Use break-even analysis to calculate exactly the break-even quantity that defines each range.

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