Question: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St.

Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit as shown in the table, decide which site isbest.

FROM EXISTING PLANTS TO Blue Earth Cro Des Moines Capacity DECATUR MINNEAPOLIS CARBONDALE DEMAND 520 S25 $22 300 $17 $27 $25 200 521 $20 $22 150 250 200 350 FROM PROPOSED PLANTS TO Blue Earth Ciro Des Moines Capacity EAST ST. LOUIS %29 30 $30 150 ST. LOUIS $27 $28 531 150

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