Purchase Solution

Decision making :Selecton of location

Not what you're looking for?

Ask Custom Question

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.

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

Purchase this Solution
Solution Summary

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

Purchase this Solution
Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • Identify consequences and value benefits using scaled measurement

    Decision Making Objectives: The researcher must choose which of the five job opportunities is the most practical based on a series of objectives.

  • Identify methods for improving work design

    What methods would suggest the company should use in making the final decision on this facility location.

  • Pros and Cons of Outsourcing

    The communication differs in methodology for the differing applied political approaches to management decision-making, due to the different characteristics of each political approach.

  • Decision-Making Techniques

    612010 Decision-Making Techniques Decision-Making Within the context of your local business, organization, or place of employment, apply two (2) of the decision-making techniques, a decision that you will make now or in the near future.

  • Information Systems for Decision-Making

    Information Systems for Decision-Making are discussed.

  • Question about Microeconomics and Macroeconomics

    Factors that affected my decision were: 1) My purchasing power 2) Price of the computer 3) Discount offered 4) Services offered by the vendor B) Decision making at business For business I took decision to change the location of office.

  • Bias in business decisions

    Identify the Criteria Part of the process of making a rational and well informed decision involves recognizing all of the crucial factors that will assist in decision making (Bazerman & Moore, 2009).

  • Decision-making techniques

    This posting provides the process of using decision making techniques for arriving at a decision of opening a second store for ZebraRuns.

  • How to locate a business

    Discuss if Jack and Jenny have a social responsibility to keep the store at the current location 2. Identify how the issue of ethnic diversity in the neighborhood plays into Jack and Jenny's decision - making process 3.

  • Extensive Research

    Life decisions consist of those that affect the trajectory of a person's life such as marriage, having kids, moving to a new location, etc.

View More Related Solutions