Decision Point: Your Location Recommendation Based on CostVolume Analysis

Joyce appreciated your report and tells you, "Analytical skills are critical for the upper$-$level operations specialists. I can tell you are good at it$.$ Here's another opportunity to showcase your abilities."

The construction cost of the new facility will be a huge investment. LOLA needs to be very cautious when evaluating the costs for different locations. Currently, the top three potential locations are:

Houston, Texas: Fixed cost $$85$ million; variable cost $$\frac{80}{?}$ square foot

Kansas City, Kansas: Fixed cost $$70$ million; variable cost $$\frac{92}{?}$ square foot

Atlanta, Georgia: Fixed cost $$40$ million; variable cost $$\frac{100}{?}$ square foot

LOLA's $10-$year plan calls for an additional $5$ million square feet of manufacturing and office space. Joyce would like to know which location should be scored highest in terms of the construction cost factor.

Select an option from the choices below and click Submit.

Kansas City

Houston

Atlanta