subject
Business, 05.05.2020 06:10 gomek

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 than 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 $187 in either case.

Omaha Kansas
Annual fixed cost ($million) 1.0 1.1
Variable cost per unit 30 45
Expected annual demand (unit) 980 11,625

Using the above information, determine what the profit would be for Kansas City

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 04:30
Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)
Answers: 1
question
Business, 23.06.2019 02:00
When the two countries did not specialize, the total production of jeans was 23 million pairs per month, and the total production of corn was 68 million bushels per month. because of specialization, the total production of jeans has increased by million pairs per month, and the total production of corn has increased by million bushels per month. because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade?
Answers: 1
question
Business, 23.06.2019 04:40
What are the advantages and disadvantages for an individual who accepts a job as a human resource manager in a firm that is in the midst of a retrenchment corporate strategy? a reactor business strategy?
Answers: 3
question
Business, 23.06.2019 07:50
Discuss the positive and negative effects of the north american free trade agreement on the united states. support your conclusions with examples and evidence from the lesson.
Answers: 2
You know the right answer?
A newly formed firm must decide on a plant location. There are two alternatives under consideration:...
Questions
question
English, 31.12.2020 19:00
Questions on the website: 13722363