Question
Omaha Supplies is constructing a new warehouse to serve its existing market. Locations A, B, and C are under consideration. Fixed and variable costs follow.
Omaha Supplies is constructing a new warehouse to serve its existing market. Locations A, B, and C are under consideration. Fixed and variable costs follow.
| Location | Fixed Cost per Year | Variable Cost per Unit |
| A | $3,000,000 | $20 |
| B | $2,500,000 | $25 |
| C | $3,250,000 | $35 |
Which location(s) can be eliminated from further consideration because they are dominated by another community?
Group of choices:
Eliminate C only
Eliminate B only
Eliminate C and B
Eliminate A only
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Operations Management
Authors: R. Dan Reid, Nada R. Sanders
4th edition
9780470556702, 470325046, 470556706, 978-0470325049
