Question Three(3)

You have carried out feasibility study and identified three possible locations for a new retail outlet. Following are the annual cost incurred for each location

Location	Fixed Costs	Variable Cost
Marang	RM 30,000	RM 75
Dungun	RM 60,000	RM 45
Kuala Terengganu	RM 110,000	RM 25

Table 3

1. Which location is the most economical if the expected demand is 2,000 units?
2. Compute the expected profit for each location if the selling price is RM 120
3. Explain TWO(2) importance of location strategic in business