Question: * Cunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below. The annual production
* 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 30,000 units. For what range of demand would each location be best? Data Location 1 Location 2 Location 3 Location 4 Location 5 Fixed costs $75,000.00 $110,000.00 $95,000.00 $125,000.00 $110,000.00 Direct material cost/unit $4.14 $4.65 $5.05 $4.50 $4.50 Direct labor cost/unit $12.45 $13.80 $11.80 $15.60 $13.75 Overhead/unit $2.25 $2.60 $1.95 $2.75 $2.10 Transportation cost/unit $0.50 $0.65 $0.30 $0.83 $0.67
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