A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs compared to locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $189 in either case.
Omaha Kansas
City Annual fixed costs ($ millions) $1.2 $1.1
Variable cost per unit $39 $54
Expected annual demand (units) 10,350 10,950
Required:
Using the above information, determine which location would produce the greater profit.
Answers: 3
Another question on Business
Business, 22.06.2019 07:50
Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?
Answers: 1
Business, 22.06.2019 16:50
According to ceo heidi ganahl, camp bow wow requires a strong and consistent corporate culture to keep all local franchise owners "on the same page" and to follow a common template for the business and brand. this culture could become detrimental over time because: (a) strong consistent cultures are inflexible and incapable of adapting to environmental change (b) strong consistent cultures are too flexible and capable of adapting to environmental change (c) strong consistent cultures don’t perform well in any environment (d) the passing of time provides stability and predictability for businesses
Answers: 2
Business, 23.06.2019 12:00
An increase in mexico’s demand for united states goods would cause the value of the dollar to
Answers: 1
Business, 23.06.2019 17:30
Copan italia is a distributor of laboratory products and manufacturer of laboratory commodities, including transfer pipettes and flexible hematology cups used on a variety of automatic instruments to count blood corpuscle elements. copan's says that the company's business is to continually work to improve the quality of the collection and preservation of the microbiological sample in the "pre-analytical phase," as the demand for better protection of the specimen is growing day by day.
Answers: 2
You know the right answer?
A newly formed firm must decide on a plant location. There are two alternatives under consideration:...
Questions
Computers and Technology, 12.07.2019 23:10
