Question: Five locations are being considered for future expansion. The table below lists the fixed and variable costs for each location. Determine the best choice

the fixed and variable costs for each location. Determine the best choice

Five locations are being considered for future expansion. The table below lists the fixed and variable costs for each location. Determine the best choice by cost if there is an anticipated demand of 25,000 units. FIXED COST VARIABLE COST $200,000 $11.00 $225,000 $9.00 $270,000 $5.00 $310,000 $7.00 $360,000 $4.00 LOCATION ANACORTES BELLINGHAM EVERETT PORTLAND SEATTLE a. Determine the best choice according to the least expensive city if there is an anticipated demand of 25,000 units. b. Of the three lowest cost locations from part a, what are the indifference points between them? 1 2 3 Demand 140 Assignment Order: A 8 14 6 180 B 5 7 10 150 C 10 8 5 130 3 2 9 Supply 180 300 120 600 600 Total Cost: 1 2 3 Demand 140 Assignment Order: A 8 14 6 180 B 5 7 10 150 C 10 8 5 130 3 2 9 Supply 180 300 120 600 600 Total Cost: 2 3 Demand 140 Assignment Order: A 8 14 6 180 B 5 7 10 150 C 10 8 5 130 D 3 2 9 Supply 180 300 120 600 600 Total Cost:

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