Growth rate is seeking to lease small plant in memphis

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Reference no: EM132240089

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $62,000 for Memphis, $72,000 for Biloxi, and $107,000 for Birmingham. Labor and materials are expected to be $10 per unit in Memphis, $6 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $61,000 per year, the Biloxi location by $71,500 per year, and the Birmingham location by $25,700 per year. Expected annual volume is 14,700 units. (Omit the "$" sign in your response.)

Find total cost of Memphis, Biloxi, and Birmingham

Reference no: EM132240089

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