POINT OF INDIFFERENCE ASSIGNMENT

A distribution company is considering two locations for the construction of a new automated warehouse: Chicago and Dallas. Two types of automation are also being considered: bar coding and RF/ID (radio-frequency identification). The annual operating costs for each type of automation at the two locations are:

	Bar Coding		RF/ID
Location	Fixed Cost	Variable Cost per 1,000 units	Fixed Cost	Variable Cost per 1,000 units
Chicago	$1,800,000	$12.30	$2,700,00	$9.70
Dallas	1,500,000	13.10	2,300,000	9.40

For what range of annual product volume handled would each location and type of automation be preferred?