Q 2 John Kros,owner of a manufacturing company is considering to expand the capacity for a new plant He is considering three locations as given in data. He has assembled the following fixed & variable cost data: Per units cost Material Overhead Labor Fixed Cost Per year 200,000 180,000 170,000 Location Faisalabad Islanıabad Lahore 0.1 0,4 0,75 0,5 0.3 0.90 0.7 1.10 1.00 Determine the minimum cost location for different range of output.

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Q 2 John Kros,owner of a manufacturing company is considering to expand
the capacity for a new plant He is considering three locations as given in
data. He has assembled the following fixed & variable cost data:
Per units cost
Overhead
Material
Labor
Fixed Cost
Per year
200,000
180,000
170,000
Location
Faisalabad
Islanıabad
Lahore
0,5
0.7
0.1
0.3
0.90
0,4
0,75
1.10
1.00
Determine the minimum cost location for different range of output.
Transcribed Image Text:Q 2 John Kros,owner of a manufacturing company is considering to expand the capacity for a new plant He is considering three locations as given in data. He has assembled the following fixed & variable cost data: Per units cost Overhead Material Labor Fixed Cost Per year 200,000 180,000 170,000 Location Faisalabad Islanıabad Lahore 0,5 0.7 0.1 0.3 0.90 0,4 0,75 1.10 1.00 Determine the minimum cost location for different range of output.
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