Answer:
Expected annual volume = 18400 units
For Memphis:
Annual cost for building ,equipment and administration = $42800
Annual labor and material cost =Annual volume x cost per unit = 18400 x $8 = $147200
Annual transportation cost = $50000
So,Total cost = $42800 + $147200 + $ 50000 = $240000
For Biloxi:
Annual cost for building ,equipment and administration = $60000
Annual labor and material cost =Annual volume x cost per unit = 18400 x $4 = $73600
Annual transportation cost = $60000
So,Total cost = $60000 + $73600 + $ 60000 = $193600
For Birmingham:
Annual cost for building ,equipment and administration = $100000
Annual labor and material cost =Annual volume x cost per unit = 18400 x $5 = 92000
Annual transportation cost = $27600
So,Total cost = $100000 + $92000 + $27600 = $219600
Explanation:
