Answer:
Memphis $170,000
Biloxi $160,000
Birmingham $175,000
Explanation:
Preparation of an economic analysis of the three locations
Memphis economic analysis using this formula.
Economic analysis=(Building, equipment, administration costs+Increased transportation costs+(Expected volume *Labor and materials per units)
Let plug in the formula
Memphis Economic Analysis = $40,000 + $50,000 + (10,000 units *$8/unit )
Memphis Economic Analysis = $40,000 + $50,000 + $80,000
Memphis Economic Analysis = $170,000
Therefore Memphis Economic Analysis is $170,000
Preparation of Biloxi Economic Analysis
Biloxi Economic Analysis = $60,000 + $60,000 + (10,000 units *$4/unit )
Biloxi Economic Analysis = $60,000 + $60,000 + $40,000
Biloxi Economic Analysis = $160,000
Therefore Biloxi Economic Analysis is $160,000
Preparation of Birmingham Economic Analysis
Birmingham Economic Analysis = $100,000 + $25,000 + (10,000 units *$5/unit )
Birmingham Economic Analysis = $100,000 + $25,000 + $50,000
Birmingham Economic Analysis = $175,000
Therefore Birmingham Economic Analysis is $175,000
Therefore the summary of the economic analysis of the three locations are:
Memphis $170,000
Biloxi $160,000
Birmingham $175,000
