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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.
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 $50,000 for Memphis, $60,000 for Biloxi, and $95,000 for Birmingham. Labor and materlals are expected to be $10 per unit in Memphis, $4 per unit in Biloxi, and \$3 per unit in Birmingham. The Memphis location would increase system transportation costs by $49,000 per year, the Biloxi location by $59,500 per year, and the Birmingham location by $24,500 per year. Expected annual volume is 13,500 units
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