Question
CP LOCATION ANALYSIS DATA LOCATION 1 LOCATION 2 LOCATION 3 LOCATION 4 LOCATION 5 Fixed costs $75,000.00 $110,000.00 $95,000.00 $125,000.00 $110,000.00 Direct material cost/unit $4.14
CP LOCATION ANALYSIS DATA | LOCATION 1 | LOCATION 2 | LOCATION 3 | LOCATION 4 | LOCATION 5 |
---|---|---|---|---|---|
Fixed costs | $75,000.00 | $110,000.00 | $95,000.00 | $125,000.00 | $110,000.00 |
Direct material cost/unit | $4.14 | $4.65 | $5.05 | $4.50 | $4.50 |
Direct labor cost/unit | $12.45 | $13.80 | $11.80 | $15.60 | $13.75 |
Overhead/unit | $2.25 | $2.60 | $1.95 | $2.75 | $2.10 |
Transportation cost/unit | $0.50 | $0.65 | $0.30 | $0.83 | $0.67 |
Cunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below. The annual production is estimated to be 30,000 units.
Which location provides the least cost?
For what range of demand would each location be best?
See Cunningham Products Location Analysis data, below.
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