XYZ Company is considering expanding its new plant. Its favorable sites for expansion are Greenwood, Indianola, and Greenville. The company must select one of these sites given the following information (1) The company is expecting to sell 3000 units per year. (2) Fixed costs per year at Greenwood, Indianola and Greenville are $50,000, $80,000, and $120,000; and variable costs are $60, $100, and $80 per unit respectively. (3) The expected selling price for each unit $150. Based on the expected profit of each location, which site will be selected for plant expansion?
XYZ Company is considering expanding its new plant. Its favorable sites for expansion are Greenwood, Indianola, and Greenville. The company must select one of these sites given the following information (1) The company is expecting to sell 3000 units per year. (2) Fixed costs per year at Greenwood, Indianola and Greenville are $50,000, $80,000, and $120,000; and variable costs are $60, $100, and $80 per unit respectively. (3) The expected selling price for each unit $150. Based on the expected profit of each location, which site will be selected for plant expansion?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 100P
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XYZ Company is considering expanding its new plant. Its favorable sites for expansion are Greenwood, Indianola, and Greenville. The company must select one of these sites given the following information
(1) The company is expecting to sell 3000 units per year.
(2) Fixed costs per year at Greenwood, Indianola and Greenville are $50,000, $80,000, and $120,000; and variable costs are $60, $100, and $80 per unit respectively.
(3) The expected selling price for each unit $150.
Based on the expected profit of each location, which site will be selected for plant expansion?
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