Problem $8-6($Static$)$

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or

Birmingham, AL$.$ Prepare an economic analysis of the three locations given the following information: Annual costs for building,

equipment, and administration would be $$40,000$ for Memphis, $$60,000$ for Biloxi, and $$100,000$ for Birmingham. Labor and materials

are expected to be $$8$ per unit in Memphis, $$4$ per unit in Biloxi, and $$5$ per unit in Birmingham. The Memphis location would increase

system transportation costs by $$50,000$ per year, the Biloxi location by $$60,000$ per year, and the Birmingham location by $$25,000$ per

year. Expected annual volume is $10,000$ units.