Question: The operations manager for Mile - High Lemonade narrowed the search for a new facility location to six communities. Annual fixed costs ( land ,
The operations manager for MileHigh Lemonade narrowed the search for a new facility location to six communities. Annual fixed costs land property taxes, insurance, equipment, and buildings and variable costs labor materials, transportation, and variable overhead are shown in the following Table:
Community Fixed Cost Variable Cost per Barrel
Aurora
Boulder
Colorado Springs
Denver
Fort Collins
Golden
Nashville
a Which of the communities can be eliminated from further consideration because they are dominated by another community?
b Considering three communities: Aurora, Colorado Springs and Denver. Using Locational CostVolume Analysis to determine the range over which each community provides the lowest cost.
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