Cunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below. The annualproduction is estimated to be 35,000 units.CP Location Analysis DataFixed costsDirect material cost/unitDirect labor cost/unitLocation 2$115,000.00Location 3$100,000.00Location 4$145,000.00Location 5$115,000.00Location 1$75,000.00$4.08$4.60$5.15$4.30$12.65$14.00$12.00$15.50Overhead/unit$2.50$2.20$2.90$2.50$0.55Transportation cost/unit$0.60$0.20$0.89a. Use the Location Analysis Excel template to determine the location that provides the least cost. Calculate the total cost for each location. Round your answers to the nearestdollar.$4.30$13.55$2.10$0.61 Total costsLocation 1CP LocationLocation 1Location 2Location 3Location 4Location 5$Which location provides the least cost?-Select- provides the least cost.b. For what range of demand would each location be best?Range of demand$-Select--Select--Select--Select--Select-Location 2✓✓✓V$Location 3$Location 4$Location 5

For each location, I am given the fixed costs and the variable costs per unit, I will determine the…

Answered: CP Location Location 1 Location 2…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Weighted factor methodUse the table to calculate the most ideal X coordinate for supermarket Point Quantity offered/requested Transportation costs Coordinate X Coordinate Y Supermarket 1 3,000 0.04 4 8 Supermarket 2 3,500 0.04 7 2 Supermarket 3 2,000 0.07 3 5 Supermarket 4 1,500 0.07 7 4 Supermarket 5 1,200 0.07 6 8
Q1. Explain how the principle of compatibility in retail location will assist yourbusiness. Note: it is important that you consider using examples when responding to this question.
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