a)

The two locations have fixed and variable costs as follows:

Annual Operating Costs
LOCATION	FIXED	VARIABLE
Atlanta	$80,000 /yr	$20 /unit
Phoenix	$140,000 /yr	$16 /unit

Total Cost = FC + (V*Q)

FC = Fixed Cost

V = Variable cost per unit

Q = Quantity of output

What would be the total annual cost for the Phoenix location with an annual output of 10,000 units?

		$280,000
		$140,000
		$220,0000
		$300,000
		$156,000

b)In a JIT/lean system material deliveries from suppliers should be delivered where?

The production floor Quality control Purchasing Inspection department

c)In a JIT/lean system material deliveries from suppliers should be delivered where?

The production floor Quality control Purchasing Inspection department