Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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William Green, vice president of manufacturing for computer products (CPC), and his staff are studying three midwestern alternative locations for a new production facility for producing high-resolution scanners. His staff analysts predict that the scanners will be a growing market over the next ten years, and the analyst's group shares marketing's enthusiasm for planning facilities for producing this new product line. The analysts have developed these estimates for the three locations;
In what range of production volume would each of the locations be preferred (at the minimum cost)?
Variable cost | ||
locations | Annual Fixed costs | per scanner |
Cleveland, Ohio | $390,000 | $34 |
South Bend, Indiana | $360,000 | $37 |
Grand Rapids, Michigan | $310,000 | $40 |
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