Using location break-even analysis, determine the ideal location for a distribution centre given the information in the table below. We will assume that the price will remain at $2000 for all locations and the quantity for all location is 15,000
Location |
Fixed cost per year $ |
Variable cost per year $ |
Transportation cost $ |
Location 1 |
600,000 |
200 |
200 |
Location 2 |
360,000 |
150 |
350 |
Location 3 |
900,000 |
300 |
100 |
Location 4 |
720,000 |
250 |
150 |
