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ACC- Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States

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Question;Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver,Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent,equipment, and insurance) and average variable costs per shipment (labor, transportation, andutilities) are listed in the following table. Sales projections range from 550,000 to 600,000shipments per year.LocationAnnual Fixed Costs Variable Costs per ShipmentDenver$5,000,000$4.65Santa Fe$4,200,000$6.25Salt Lake City$3,500,000$7.25a. Plot the total cost curves for all the locations on a single graph.b. Which city provides the lowest overall costs?

 

Paper#50674 | Written in 18-Jul-2015

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