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运营管理计算题解题步骤和答案

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运营管理计算题解题步骤和答案
a firm must decide on where to
locate its plants..two options are being considered,namely locate near the
source of raw materials or locate near the customers.If the plant is located near
the source of raw materials.Fix and variable cost will be lower than if it
will be located near the customers.Assume that the revenue per unite is P200
in either case.Where will you locate the plant if the data available are as
follows:
Site A Site B
Annual fixed cost P1.2M P1,4M
variable cost per unit P35 P45
Expected
annual demand 10,000 units 15,000unit
At site A:
production cost at site A:10,000*35 = 350000
Total cost:350,000 + 1,200,000 = 1,550,000
Total revenue:10,000*200 = 2,000,000
Profit:2,000,000 - 1,550,000 = 450,000
production cost at site B:15,000*45 = 675,000
Total cost:675,000 + 1,400,000 = 2,075,000
Total revenue:15,000*200 = 3,000,000
Profit:3,000,000 - 2,075,000 = 925,000
Site B offers better profit.