Question
Kansas Manufacturing has two manufacturing facilities, one in Manhattan, KS and another one in Houston, TX. This company wants to identify the extent of market
Kansas Manufacturing has two manufacturing facilities, one in Manhattan, KS and another one in Houston, TX. This company wants to identify the extent of market between the two facilities. The production cost at Manhattan and Houston are $32.5 and $31.5 per unit respectively and the transportation cost from Manhattan and Houston are $0.75 and 0.65 per unit per mile, respectively. (the distance between the facilities is 733 miles). Please identify the extent of market area of Manhattan facility.
A, The extent of market area of Manhattan facility?
B, Total landed cost of Manhattan, KS
C, Total landed cost of Houston, TX
D, Solve using Excel Soilver
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