Question

A manufacturing firm is deciding to open a new warehouse. The first location would be in Cleveland, with lower shipping costs. The second location would be in Chicago, with higher expected sales. The per-unit revenue for each widget is $186.

Cleveland Chicago

Annual fixed costs ($ millions) $ 0.9 $ 1.3

Variable cost per unit $ 32 $ 45

Expected annual demand (units) 9,600 10,200

Where do you recommend they locate, in order to maximize profit?

(Omit the "$" sign in your response.)

would produce the greater gross profit of( $ )

Answer 1

Provide your valuable feedback and like if you are satisfied with answer???