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

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!