### The lake charles location would increase system

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A company that manufactures pipe for the oil and gas industry is looking for warehouse space to house additional inventory in Lake Charles, LA; Houma, LA; or Gulf Port, MS. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be \$34,600 for Lake Charles, \$60,000 for Houma, and \$100,000 for Gulf Port. Labor and materials are expected to be \$8 per unit in Lake Charles, \$4 per unit in Houma, and \$5 per unit in Gulf Port. The Lake Charles location would increase system transportation costs by \$50,000 per year, the Houma location by \$60,000 per year, and the Gulf Port location by \$29,600 per year. Expected annual volume is 10,400 units.(Omit the "tiny_mce_markerquot; sign in your response.)

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