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 estimated to be 25,000 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 Direct material cost/unit Direct labor cost/unit Overhead/unit Transportation cost/unit Fixed Costs80,000.00 S100,000.00$75,000.00 $125,000.00 $110,000.00 $4.50 $13.75 $2.10 $0.67 $4.25 $12.60 $2.00 $0.45 $4.30 60 $14.40 $2.50 0.60 $4.05 $11.80 1.95 0.30 $4.50 $15.60 2.75 0.83