Answer:
The annual costs for Memphis, Biloxi, and Birmingham is $197,600, $172,000 and $255,800 respectively
Explanation:
The computation of the total cost is shown below
For Memphis:
= Annual cost of fixed assets + (annual volume × Labor and materials per unit) + transportation cost
= $43,600 + (13,000 units × $8 per unit) + $50,000
= $197,600
For Biloxi:
= Annual cost of fixed assets + (annual volume × Labor and materials per unit) + transportation cost
= $60,000 + (13,000 units × $4 per unit) + $60,000
= $172,000
For Birmingham:
= Annual cost of fixed assets + (annual volume × Labor and materials per unit) + transportation cost
= $100,000 + (13,000 units × $5 per unit) + $25,800
= $255,800
