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 is

Cunningham Products is evaluating five possible

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 20,000 units. Location 2 Location 3 Location 5 $125,000.00 CP Location Analysis Data Location 1 Fixed costs $65,000.00 Direct material cost/unit $4.07 Direct labor cost/unit $12.50 Overhead/unit $2.30 Transportation cost/unit $0.50 a. Calculate the total cost for each location. Round your answers to the nearest dollar. $4.70 Location 4 $110,000.00 $4.60 $15.30 $93,000.00 $5.20 $11.50 $125,000.00 $4.60 $13.55 $13.50 $2.70 $2.15 $2.85 $2.20 $0.65 $0.20 $0.85 $0.63 Location 1 Location 2 Location 3 Location 4 Location 5 Total costs $ $ Which location provides the least cost? -Select- v provides the least cost. b. For what range of demand would each location be best? CP Location Range of demand -Select- Location 1 Location 2 -Select V -Select- Location 3 Location 4 Location 5 -Select- -Select- Check My Work (1 remaining)

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 General Management Questions!