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A firm that has recently experienced enormous growth is seeking to lease a small plant in Tulsa OK, Ft. Worth TX or Kansas City KS. Annual costs for building, equipment and administration would be 200,000 in Tulsa, 10000 in Ft. Worth, and 25000 in Kansas City. System transportation costs are expected to increase by 50000 if the Tulsa site was chosen, 10000 if the Ft. Worth site was chosen and 55000 if the Kansas City site was chosen. Variable costs per unit would be $500 at the Tulsa site, $2500 at the Ft. Worth site and $1200 at the Kansas City site.

a. Create a graph that shows TOTAL COST vs VOLUME (all three options on ONE graph) for volume ranging from 0 to 500.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92542068

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