Answer:
6a. For this subitem we are tasked to compare the cost per unit if we were to send two orders to a combination of any two factories. We will just find the cost per unit for every combination and show the average weighted cost by following the given formula.
Combination 1
Wichita: 7,000 units = $1
Seattle: 30,000 units = $0.68
Average Cost: $0.74
Combination 2
Wichita: 7,000 units = $1
Omaha: 30,000 units = $0.67
Average Cost: $0.73
Combination 3
Seattle: 7,000 units = $0.35
Omaha: 30,000 units = $0.67
Average Cost: $0.61
Combination 4
Omaha: 7,000 units = $0.85
Seattle: 30,000 units = $0.68
Average Cost: $0.71
Combination 5
Omaha: 7,000 units = $0.85
Wichita: 30,000 units = $0.80
Average Cost: $0.81
Combination 6
Seattle: 7,000 units = $0.35
Wichita: 30,000 units = $0.80
Average Cost: $0.71
6b. For this subitem we need to give all 37,000 units to one factory. We just need to calculate the cost per unit for every function. The calculation for the three factories is shown below (except when no calculation is needed, only inspection of the graph or function):
Wichita: not defined
Seattle:
Omaha:
6c. For this item, we will review our answers for the two previous subitems and select the one with the lowest cost per unit. Upon examining, we can see that letting Omaha produce all 37,000 units will yield the lowest cost.
ANSWER: Orders B and C should be produced by Omaha's factory.
Total # of units produced for the company today: 37,000
Average cost per unit for all production today: $0.60
Step-by-step explanation:
=