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A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70,000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90,000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit.
A) Which alternative would yield the higher profit for an annual demand of 3,000 units?
B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be?
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The Final Paper provides you with an opportunity to integrate and reflect on what you have learned during the class. The question to address is: "What have you learned about statistics?" In developing your responses, consider - at a minimum - and ..
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Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units. (Hint: there are two learning curve..
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