Tnsportation costs per 1000 units 800 , Econometrics

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Tnsportation costs per 1000 units 800

The following data are related to the operating costs of three possible locations for Fountain Manufacturing

location 1 location 2 location3

fixed costs $165,000 $125,000 $180,000

direct material cost per unit 8.5 8.4 3.7

Direct labor cost per unit 4.2 3.9 3.7

Overhead per unit 1.2 1.1 1.0

Transportation costs per 1000 units 800 1,100 950

Which location would minimize the total costs, given an annual production of 50,000 unit? for what levels of manufacture and distribution would each location be best?

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Econometrics: Tnsportation costs per 1000 units 800

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Econometrics: Tnsportation costs per 1000 units 800

Reference No:- TGS0571798

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Reference No:- TGS0571798

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