Question: Two alternative locations are under consideration for a new plant: Jackson, Mississippi, and Dayton, Ohio. The Jackson location is superior in terms of costs. However,
Two alternative locations are under consideration for a new plant: Jackson, Mississippi, and Dayton, Ohio. The Jackson location is superior in terms of costs. However, management believes that sales volume would decline if this location were chosen because it is farther from the market, and the firm's customers prefer local suppliers. The selling price of the product is
$300
per unit in either case. Use the following information to determine which location yields the higher total profit per year:
LOADING...
| Location | Annual Fixed Cost | Variable Cost per Unit | Forecasted Demand per Year |
| Jackson | $2,050,000 | $45 | 35,000 units |
| Dayton | $2,000,000 | $70 | 39,000 units |
Part 2
The annual profit from Jackson is
$enter your response here.
(Enter your response as an integer.)
Part 3
The annual profit from Dayton is
$enter your response here.
(Enter your response as an integer.)
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