Question: 8 9 30 Spreadsheet Cunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below.

8 9 30 Spreadsheet 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 20,000 units. CP Location Analysis Data Location 1 Location 2 Location 3 Location 4 Location 5 Fixed costs $65,000.00 $110,000.00 $108,000.00 $110,000.00 $110,000.00 Direct material cost/unit $4.02 $4.55 $5.10 $4.40 Direct labor cost/unit $12.55 $13.80 $11.50 $15.80 $13.95 Overhead/unit $2.10 $3.00 $2.50 $2.20 Transportation cost/unit $0.50 $0.60 $0.30 $0.81 $0.61 a. Use the Location Analysis Excel template to determine the location that provides the least cost. Calculate the total cost for each location. Round your answers to the nearest dollar $4.40 31 $2.05 12 34. 35 Location 1 . Location 2 Location 3 Location 5 Location 4 Total costs 36 . 37 . Which location provides the least cost? -Select- provides the least cost. b. For what range of demand would each location be best? 38 10 Range of demand Select Select . 41 CP Location Location 1 Location 2 Location 3 Location 4 Location 5 Select 63 Select $ 4 B11 fx 50000 G F Cengage Learning Not for commercial use. Location 5 Location 5 A B D E 1 Location Analysis 2 Enter data only in yellow cells. The template is designed for up to 5 locations. 3 4 Data Location 1 Location 2 Location 3 Location 4 5 Fixed Costs $165,000.00 $125,000.00 $180,000.00 6 Direct material cost/unit $8.50 $8.40 $8.60 7 Direct labor cost/unit $4.20 $3.90 $3.70 8 Overhead/unit $1.20 $1.10 $1.00 9 Transportation cost/unit $0.80 $1.10 $0.95 10 11 Annual Production 50000 12 13 Total Costs Location 1 Location 2 Location 3 Location 4 14 Fixed Costs $165,000.00 $125,000.00 $180,000.00 15 Direct material cost $425,000.00 $420,000.00 $430,000.00 16 Direct labor cost $210,000.00 $195,000.00 $185,000.00 17 Overhead $60,000.00 $55,000.00 $50,000.00 18 Transportation cost $40,000.00 $55,000.00 $47,500.00 19 Total $900,000.00 $850,000.00 $892,500.00 20 21 Least-cost location Location 2 22 23 24 25 26 27 28 29 30 31 32 33 34 35

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