Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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The Quick Copy center for document copying is deciding
where to locate a new facility. Th e annual fi xed and variable costs
for each site it is considering have been estimated as follows:

If demand is expected to be 3000 units, which location is best?

Location
Fixed Costs
Variable Costs
$85,000
$49,000
A
$2/unit
B
$7/unit
C
$35,000
$10/unit
D
$65,000
$6/unit
Transcribed Image Text:Location Fixed Costs Variable Costs $85,000 $49,000 A $2/unit B $7/unit C $35,000 $10/unit D $65,000 $6/unit
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