Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment, and insurance) and
Location | Annual fixed cost | Variable Costs per Shipment |
Denver | $5,000,000 | $4.65 |
Santa Fe | $4,200,000 | $6.25 |
Salt Lake City | $3,500,000 | $7.25 |
a. Plot the total cost
b. Which city provides the lowest overall costs?
Thank you!!!
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