Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual

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Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows:

If demand is expected to be 2000 units, which location isbest?

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Operations Management

ISBN: 978-0470325049

4th edition

Authors: R. Dan Reid, Nada R. Sanders

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Question Posted: Jul 11, 2014 03:58 AM

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Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual

Question:

Location Fixed Costs Variable Costs $70,000 $34,000 $20,000 $50,000 $1/unit $5/unit $8/unit $4/unit

Step by Step Answer:

Total Cost A 70000 12000 72000 Total Cost B 34000 ...View the full answer

Operations Management

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