A manufacturer company preparing to build a new plant is considering three potential locations- Ampang, Gombak Setia and Seremban- for a new plant. Cost studies indicated that fixed costs per year at the sites are $2,500,000.00; $2,000,000.00 and $3,500,000.00, respectively and the material costs are $8, $10 and $6 respectively. The labour cost for each, $8, $8 and $5 respectively and the overhead, $5, $7 and $ 4 respectively.

Show a table for all the costs(fixed cost and variable cost) in the scenario above.

Write out the equation for total cost for each location

For what range of the location for Ampang is the lowest-cost choice.

For what range of the location for Gombak Setia is the lowest-cost choice.

For what range of the location for Seremban is the lowest-cost choice.

Is any alternative never preferred? Explain.

Graph the total-cost line for the three potential sites.

Answer rating: 100% (QA)

a Table for all the costs Location Ampak Gombak Setia Seremban Fixed costs 250000000 200000000 35000... View the full answer