Answered: Sparkling group is a drinking water…

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

Sparkling group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below:

a. How much is the annual box sales volume for each area to be able to compete on a competitive advantage strategy with competitors?

b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.

COSTbоx
FIXED COST/year
MATERIAL
LABOR
OVERHEAD
Location
(S)
($)
(S)
(S)
Теxas
200.000
0,10
0,40
0,5
Chicago
New York
180.000
0,25
0,75
0,50
170.000
0,5
1,00
1,00

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