Explore BrainMass

Explore BrainMass

    Decision making :Selecton of location

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please provide the answer to the problem below showing all the work by which the answer was derived.

    Peter Billington Stereo Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase.

    Given the following costs, perform an analysis of the volume over which each location is preferable.

    Fixed costs $600,000 $800,000
    Variable costs $28/radio $22/radio

    © BrainMass Inc. brainmass.com June 3, 2020, 9:12 pm ad1c9bdddf

    Solution Summary

    An Excel file analysis of data to select the location is provided.