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Chapter 8 - Location Use the following information to answer questions 1 - 5 A company is looking to open a second factory to support Eastern Canada. They have identified 3 potential locations. The company expects to produce 75,000 units per year. They require your support to complete a cost analysis of their proposed locations. Location Building Lease and Admin Cost (per month) Variable Cost per Unit Brampton $45,000 $7 Sudbury $35,000 35 Downtown Toronto $60,000 $12 What is the total Operating cost for Brampton? (2 marks) $1,055,000 $1,620,000 $570,000 5795,000 Chapter 8 - Location Use the following information to answer questions 1 - 5 A company is looking to open a second factory to support Eastern Canada. They have identified 3 potential locations. The company expects to produce 75,000 units per year. They require your support to complete a cost analysis of their proposed locations. Location Building Lease and Admin Cost (per month) Variable Cost per Unit Brampton $45,000 $7 Sudbury $35,000 35 Downtown Toronto $60,000 $12 What is the total Operating cost for Brampton? (2 marks) $1,055,000 $1,620,000 $570,000 5795,000 Which location should the company select purely based on cost structure? (2 marks) Brampton Sudbury Downtown Toronto QUESTION 3 The company is considering additional criteria for the locations and have partially filled out a factor analysis (below). Use this additional information to answer questions 3-5 Scores Weighting Brampton Sudbury Downtown Toronto Cost Structure Worker Availability 40% 80.00 60.00 50.00 Proximity to Customers 45% 70.00 40.00 80.00 Determine the weighting for the cost structure criteria. (2 marks) QUESTION 4 What location would have the highest cost structure score based on the operating cost analysis you did in the previous questions (1-3)? (2 marks) O Brampton Sudbury Downtown Toronto QUESTION 5 Based on the factor analysis, where should the company locate its new factory? (2 marks) Brampton O Sudbury O Downtown Toronto