Question: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St.

 Dana Johnson Corp. is considering adding a fourth plant to its

Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit as shown in the table, decide which site is best. From Existing Plants Decatur $20 $25 $22 250 Minneapolis Carbondale 0 Blue Earth Ciro Des Moines Capacity $17 $27 $25 $21 S20 $22 100 Demand 200 150 300 150 From Proposed Plants East St. Louis St. Louis $27 0 Blue Earth Ciro Des Moines Capacity S29 $30 $30 150 $28 $31 150 Comparing the total cost at two locations, Dana Johnson Corp. should select East St. Louis with a total cost of S(enter your response as a whole number)

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!