Solved Problem 2
The operations manager for Mile-High Lemonade narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and variable costs (labor, materials, transportation, and variable overhead) are shown in Table 13.2.
MyLab Operations Management
Table 13.2 Fixed And Variable Costs For Mile-High Lemonade
Community |
Fixed Costs per Year |
Variable Costs per Barrel |
|---|---|---|
Aurora |
$1,600,000 |
$17.00 |
Boulder |
$2,000,000 |
$12.00 |
Colorado Springs |
$1,500,000 |
$16.00 |
Denver |
$3,000,000 |
$10.00 |
Englewood |
$1,800,000 |
$15.00 |
Fort Collins |
$1,200,000 |
$15.00 |
Golden |
$1,700,000 |
$14.00 |
Which of the communities can be eliminated from further consideration because they ...
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