OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 6, Problem 2CQD
Summary Introduction
Interpretation:
Summary scores for each stadium
Concept Introduction:
Location is one of the most important aspect of business. Business must be located within close vicinity of market. It is advantageous if it is close to warehouse, market, suppliers of goods, customers etc, it leads to reduction in cost, thereby economies of scale.
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A: 67, 0, 250
67, 0, 250
67, 0, 250
B: SIte 1, Site 2, Site 3
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(use excel to show formulas used)
Amazing is evaluating three locations for a second headquarters. Costs for construction at location A are $18,900,000, Location B are $21,700,000 and Location C are $23,300,000. Variable costs for Location A are $16, Location B are $14 and Location C are $12. The company plans to sell products for $27.
What is the break-even point for each location?
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Chapter 6 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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