Tyreek is comparing the cost to produce footballs at four different locations, shown in the table below alongwith their cost structure. His marketing director feels that its premier model, The Tyreek,could become thedominant model in the market. If volume is extremely high, which location will have the lowest cost?Cost DataStillwaterKansas City MiamiFixed costs$500,000Direct material cost per unit$10.00Direct labor cost per unit$3.00$1.10$1.10Overhead per unitTransportation cost per unitOa. Stillwaterb. Kansas CityO c. Douglasd. MiamiDouglas$650,000 $600,000 $800,000$11.00$8.00$3.00$4.00$1.00$1.50$0.80$1.25$7.00$5.00$1.20$0.90

Let me state the given data, Cost dataStill waterKansas CityMiamiDouglasFixed…

Answered: Tyreek is comparing the cost to produce…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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