A distribution company is considering two locations for the construction of a new automated warehouse: Chicago and Dallas. Two types of automation are also being considered: bar coding and RF/ID (radio-frequency identification). The annual operating costs for each type of automation at the two locations are: Bar Coding RF/ID Location Fixed Cost Variable Cost per 1,000 units Fixed Cost Variable Cost per 1,000 units Chicago $1,800,000 $12.30 $2,700,000 $9.70 Dallas 1,500,000 13.10 2,300,000 9.40 For what range of annual product volume handled would each location and type of automation be preferred?
A distribution company is considering two locations for the construction of a new automated warehouse: Chicago and Dallas. Two types of automation are also being considered: bar coding and RF/ID (radio-frequency identification). The annual operating costs for each type of automation at the two locations are: Bar Coding RF/ID Location Fixed Cost Variable Cost per 1,000 units Fixed Cost Variable Cost per 1,000 units Chicago $1,800,000 $12.30 $2,700,000 $9.70 Dallas 1,500,000 13.10 2,300,000 9.40 For what range of annual product volume handled would each location and type of automation be preferred?
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Systems Of Equations
Section11.CT: Test
Problem 24CT
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A distribution company is considering two locations for the construction of a new automated warehouse: Chicago and Dallas. Two types of automation are also being considered: bar coding and RF/ID (radio-frequency identification). The annual operating costs for each type of automation at the two locations are:
|
|
Bar Coding |
RF/ID |
||
|
Location |
Fixed Cost |
Variable Cost per 1,000 units |
Fixed Cost |
Variable Cost per 1,000 units |
|
Chicago |
$1,800,000 |
$12.30 |
$2,700,000 |
$9.70 |
|
Dallas |
1,500,000 |
13.10 |
2,300,000 |
9.40 |
For what
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