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Business, 14.03.2020 04:21 Vetinthemaking21

Your company is considering expanding into the Sun Belt. Your industry is heavily dependent on water transportation, so the preliminary research has narrowed the location to three sites near port facilities in Memphis, New Orleans, and St. Louis. On the basis of the following data, which site is preferable? Show your computations.

Relevant Factors Memphis New Orleans St. Louis
Variable cost per unit $1.80 $2.00 $1.95
fixed cost/year $150,000 $300,000 $400,000
price per unit $3.00 $3.00 $3.00
volume (units/year) 300,000 250,000 325,000

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