Using location break-even analysis, determine the ideal location for a distribution centre given the information in the table below. We will assume that the price will remain at $2000 for all locations and the quantity for all location is 15,000 Location Fixed cost per year $ Variable cost per year $ Transportation cost $ Location 1 600,000 200 200 Location 2 360,000 150 350 Location 3 900,000 300 100 Location 4 720,000 250 150
Using location break-even analysis, determine the ideal location for a distribution centre given the information in the table below. We will assume that the price will remain at $2000 for all locations and the quantity for all location is 15,000 Location Fixed cost per year $ Variable cost per year $ Transportation cost $ Location 1 600,000 200 200 Location 2 360,000 150 350 Location 3 900,000 300 100 Location 4 720,000 250 150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Using location break-even analysis, determine the ideal location for a distribution centre given the information in the table below. We will assume that the price will remain at $2000 for all locations and the quantity for all location is 15,000
|
Location |
Fixed cost per year $ |
Variable cost per year $ |
Transportation cost $ |
|
Location 1 |
600,000 |
200 |
200 |
|
Location 2 |
360,000 |
150 |
350 |
|
Location 3 |
900,000 |
300 |
100 |
|
Location 4 |
720,000 |
250 |
150 |
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