Search This Blog

Showing posts with label copying. Show all posts
Showing posts with label copying. Show all posts

Friday, August 14, 2015

The Quick Copy center for document copying is deciding where to locate a new facility

The Quick Copy center for document copying is deciding where to locate a new facility. The annual fixed and variable costs for each site it is considering have been estimated as follows:

Location Fixed Costs Variable Costs
A $85,000 $2/unit
B $49,000 $7/unit
C $35,000 $10/unit
D $65,000 $6/unit

a) If demand is expected to be 3000 units, calculate the total costs.
Total Cost A = $
Total Cost B = $
Total Cost C = $
Total Cost D = $

b) Which location is best?

Click here for the solution: The Quick Copy center for document copying is deciding where to locate a new facility