3. Your company is considering expanding into the Sun Belt. Your industry is heavily dependent on water transportation, so the preliminary research has narrowed the location to three sites near port facilities in Memphis, New Orleans, and St. Louis. On the basis of the following data, which site is preferable? Show your computations.

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RELEVANT FACTORS Variable costs per unit Fixed costs/year Price per unit Volume (units/year) MEMPHIS NEW ORLEANS ST. LOUIS $1.80 $2.00 $1.95 $150,000.00 $300,000.00 $400,000.00 $3.00 300,000 $3.00 250,000 $3.00 325,000