The Fine Foods Distribution Company narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property, taxes, insurance, equipment, and buildings) and variable costs (labour, materials, transportation, and variable overhead) are shown in below table. (5 marks)

1. Which of the communities can be eliminated from further consideration because they are dominated (both variable and fixed costs are higher) by another community?
2. Plot the total cost curves for all remaining communities on a single graph. Identify on the graph the approximate range over which each community provides the lowest cost.
3. Using break-even analysis, calculated the break-even quantities to determine the range over which each community provides the lowest cost.

Fixed and Variable Costs for Fine Food Distribution Company

Community	Fixed Costs	Variable Costs
Aurora	$1, 600,000	$17.00
Boulder	$2,000,000	$12.00
Cranbrook	$1,500,000	$16.00
Deerfield	$3,000,000	$10.00
Essex	$1,800,000	$15.00
Farber	$1,200,000	$15.00
Garfton	$1,700,000	$14.00

Answer rating: 100% (QA)

Answer Communities eliminatedDominated by AuroraCranbrook Essex... View the full answer