Question: Cunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below. The annual production is

Cunningham Products is evaluating five possible locations to build a center. Data estimated from the accounting department are provided below. The annual production is estimated to be 30,000 units.

a. Which location provides the least cost?
b. For what range of demand would each location be best?

Data Location 1 Location 2 Location 3 Location 4 Location 5 Fixed Costs$75,000.00 $110,000.00 $95,000.00 $125,000.00 $110,000.00 $4.50 Direct labor cost/unit$12.45S13.80$11.80$15.60$13.75 $2.10 0.67 Direct material cost/unit $4.14 $4.65 $5.05 $4.50 Overhead/unit Transportation cost/unit $2.25 $0.50 $2.60 $0.65 $1.95 $0.30 $2.75 $0.83

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