# BUSN312 Week 4 Chapter 8 Homework. Questions and Answers.

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1. Award: 10 out of 10.00 points Problem 8-6 A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepa re an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be \$37,200 for Memphis, \$60,000 for Biloxi, and \$100,000 for Birmingham. Labor and materials are expected to be \$8 per unit in Memphis, \$4 per unit in Biloxi, and \$5 per unit in Birmingham. The Memphis location would increase system transportation costs by \$50,000 per year, the Biloxi location by \$60,000 per year, and the Birmingham location by \$23,000 per year. Expected annual volume is 14,400 units.(Omit the "\$" sign in your response.) References Worksheet Problem 8-6 Learning Objective: 08-07 Use the techniques presented to evaluate location alternatives. A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be \$37,200 for Memphis, \$60,000 for Biloxi, and \$100,000 for Birmingham. Labor and materials are expected to be \$8 per unit in Memphis, \$4 per unit in Biloxi, and \$5 per unit in Birmingham. The Memphis location would increase system transportation costs by \$50,000 per year, the Biloxi location by \$60,000 per year, and the Birmingham location by \$23,000 per year. Expected annual volume is 14,400 units.(Omit the "\$" sign in your response.) Show Less

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