3. 6.00 points Problem 8-6 experienced an enormous growth rate is seeking to lea

Question

3. 6.00 points Problem 8-6 experienced an enormous growth rate is seeking to lease a small plant in Memphis given the following would be $36,600 for Memphis A firm that has recently TN: Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three information: Annual costs for building, equipment, and $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected to be $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. ransportation costs by $50,000 per year, the Biloxi location by $60,000 per year, and the Birmingham location by $28,800 per year. Expected annual volume is 18,600 units.(Omit the "$" sign in your response.) The Memphis location would increase system l Cost Biloxi References Book& Resources Worksheet O Type here to search

Explanation / Answer

Answer

Memphis Total Cost = $36,600 + $8(18,600 units) + $50,000 = $235400

Biloxi Total Cost = $60,000 + $4(18,600 units) + $60,000 = $194400

Birmingham Total Cost = $100,000 + $5(18600 units) + $28800 = $221800

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