Tyreek is comparing the cost to produce footballs at four different locations, shown in the table below alongwith their cost structure. His marketing director feels that its premier model, The Tyreek,could become thedominant model in the market. If volume is extremely high, which location will have the lowest cost?Cost DataStillwaterKansas City MiamiFixed costs$500,000Direct material cost per unit$10.00Direct labor cost per unit$3.00$1.10$1.10Overhead per unitTransportation cost per unitOa. Stillwaterb. Kansas CityO c. Douglasd. MiamiDouglas$650,000 $600,000 $800,000$11.00$8.00$3.00$4.00$1.00$1.50$0.80$1.25$7.00$5.00$1.20$0.90

Let me state the given data, Cost dataStill waterKansas CityMiamiDouglasFixed…

Answered: Tyreek is comparing the cost to produce…

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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Brian Trump has obtained fixed- and variable-cost information for four potential sites for his professional wrestling school and summarized it in tabular form below. All values are in dollars. Site Fixed Cost Variable Cost A 10,000 24 B 12,000 20 C 14,000 18 D 16,000 17 Brian plans to charge the same amount for tuition regardless of where he decides to establish his school. If he believes that 700 students will matriculate each year, which site will result in the lowest total cost?
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A company that is developing a strategy that entails obtaining location advantages for several of its different inputs A) would have each value chain activity replicated in each of its host country locations. B) would be pursuing a low cost strategy with economies of scale. C) would concentrate each value chain activity in the country in which can be performed most efficiently or effectively. D) would concentrate most of its value chain activities in its home country, where it is most familiar with the location. E) would implement a multi-domestic or multinational strategy.
The least cost theory is based upon finding the location with the lowest marginal and average total cost. True or False?
Identify five functions that these locations perform: Content aggregation, portals, and e-commerce among the many web-related subjects discussed.
The Giant Farmer Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston. The company also operates warehouses in Miami, Florida; Denver, Colorado; Lincoln, Nebraska; and Jackson, Mississippi. Forecasts indicate that demand soon will exceed supply and that a new plant with a capacity of 8,000 cases per week is needed. The question is where to locate the new plant. Three potential sites are Buffalo, Atlanta, and Memphis. The two tables below give data on capacities, forecasted demand, and shipping costs that have been gathered. Plant Chicago Houston Capacity (cases per week) New plant Warehouse Plant Chicago Houston Buffalo (alternative 1) Atlanta (alternative 2) Memphis (alternative 3) For each alternative new plant location, determine the total cost of the shipping pattern that will minimize total transportation costs. Where should the new plant be located? If the new plant is located in Buffalo, the optimal cost is $ (Enter your…
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Which of the following statement about contemporary industrial location considerations is NOT true? Governments seek to attract industries to underdeveloped regions. China has relocated polluting factories is an example of industrial deglomeration. The Buffalo Billion Investment Development Plan is designed to keep the Buffalo Bills professional football team in the area. Transportation costs are less important in modern industrial location than they were when Weber developed his theory.
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