Question: A COMPANY is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the

 A COMPANY is considering two different locations for a new retail

A COMPANY is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Riyadh and Khobar. Factor Weight RIYADH KHOBAR Factor Description Average community income 1 .40 30 20 2 Community growth potential .25 40 30 3 Availability of public transportation Labor cost .15 20 20 4 .20 10 30 A) which location is more attractive? explain (1mark) 2)A manufacturing company is considering two alternative locations for a new facility. The fixed and variable costs for the two locations are found in the table below. A) For which volume of business would the two locations be equally attractive? (1 mark) B) If the company plans on producing 50,000 units, which location would be more attractive? (0.5 mark) Glen Rose $1,000,000 Mesquite $1,500,000 Fixed Costs Variable Costs (S per unit) 25 23

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!