The preferable location. Introduction : Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

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Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

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Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Dallas Detroit $600,000 $30/radio Fixed costs $780,000 Variable costs $22/radio a) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above radios. 27,000 97,497 22,500 74,996

Peter Billington Stereo, Inc., supplies car radios to auto manufacturers a nd is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Given the following costs: a) Perform an analysis of the volume over which each location is preferable.b) How does your answer change if Dallas's fixed costs increase by 10%?

Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Dallas $600,000 $27/radio Detroit $840,000 $21/radio a) Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above 40,000 b) Dallas's fixed costs have increased by 10%. Based on the analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best below and Detroit is best above Fixed costs Variable costs radios radios

Answer 2

Question

Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

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Answer 3

Question

Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

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Answer 4

Question

Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

Answer 6

Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

Answer 7

Chapter 8, Problem 17P

a)

Summary Introduction

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

Answer 8

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

Answer 9

b)

Summary Introduction

To determine: The change in preferred location when Location Dal fixed cost increases.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 8 - Prob. 1ED Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ

The preferable location. Introduction : Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

Solution Summary: The author explains that location is an important element for a business that controls the cost and expenses.

Concept explainers

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

To determine: The change in preferred location when Location Dal fixed cost increases.

Want to see the full answer?

Chapter 8 Solutions

The preferable location. Introduction : Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

Solution Summary: The author explains that location is an important element for a business that controls the cost and expenses.

Concept explainers

To determine: The preferable location. Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.

To determine: The change in preferred location when Location Dal fixed cost increases.

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Chapter 8 Solutions

To determine: The preferable location.

Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.