A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $45,000 for Memphis, $55,000 for Biloxi, and $90,000 for Birmingham. Labor and materials are expected to be $5 per unit in Memphis, $3per unit in Biloxi, and $3per unit in Birmingham. The Memphis location would increase system transportation costs by $44,000per year, the Biloxi location by $54,000 per year, and the Birmingham location by $24,000 per year. Expected annual volume is 13,000 units.

Memphis -

Biloxi -

Birmingham -