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Practical Management Science

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

You are trying to decide which of the following three cities in which to locate a new manufacturing
facility, and you have gathered the following information about each:
City
Annual Fixed Cost
Variable Cost (per unit)
Singapore
$30,000
$2
Hong Kong
$20,000
$3
Niagara Falls
$10,000
$6
If this facility will produce 2,000 units annually, where should you locate it?
O A. Singapore
O B. Niagara Falls
O C. either Singapore or Niagara Falls
O D. Hong Kong
O E. either Hong Kong or Niagara Falls

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