Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a newly formed firm must decide on a plant locatio

A newly formed firm must decide on a plant location. There are two alternatives under...

80.2K

Verified Solution

Question

Accounting

image
A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs compared to locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $188 in either case. Omaha Kansas City Annual fixed costs is millions 1.1 $ 1.0 Variable cost per unit 38 $ 53 Expected annual demand (units) 10,300 10,900 $ $ . ok Click here for the Excel Data File Using the above information, determine which location would produce the greater profit. nt Kansas City would produce the greater gross profit of

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

40 Which of the following complexes exhibits the highest paramagnetic behaviour Where gly glycine en...

Physics
1.2K views

An object with a mass of 4.15 kg undergoes an acceleration of 2.7 m/s2 for a...

Psychology
1.2K views

State three environmental and three human consequences of current energy use and of conspicuous consumption as...

Physics
1.2K views

Under an adiabatic process the volume of a ideal gas gets doubled Consequently the mea...

Algebra
1.2K views

Let p be a prime and n be a positive integer. Then there exists a...

Accounting
1.2K views

Pharoah Company traded machinery with a book value of $480,000 and a fair value of...

Accounting
1.2K views

Technology will actually democratize opportunity. When the new 5G network is implemented and the next...

Accounting
1.2K views

(Competency 4: Learning Objective 4) Felix Time Company manufactures and sells watches for $40 each....

Accounting
1.2K views

please help On April 1, 2022, the KB Toy Company purchased equipment...

Accounting
1.2K views

Charlie is planning to start a business selling kitten mittens. He figured that the fixed...

Finance
1.2K views

d) Based on The Edge (2021), Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate...

Finance
1.2K views

Over the period 19262019, it was recorded that ___________________ had the most volatile annual returns....