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Author Question: A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana. The ... (Read 591 times)

09madisonrousseau09

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Question 1

A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below.

a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.

CostsABC
Fixed ($)2,500,0002,000,0003,500,000
Variable ($ per unit)212515


Question 2

A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana. The primary objective of the mill is to provide the farmers with a place to take their crop for processing that will reduce their transportation costs. The members of the co-op believe that the centre-of-gravity method is appropriate for this objective. While there are over 200 sugar cane farms in the region, they are tightly clustered around six villages. Using the data below, use the centre-of-gravity method to calculate the coordinates of the best location for this mill. On the grid below, plot the location of the six farm clusters and the calculated mill location. All mileage references use the city of Lake Charles as (0,0).

VillageMiles East of
Lake Charles
Miles North of Lake CharlesSugar Cane tonnage
Arceneaux9010240,000
Boudreaux14060320,000
Cancienne2070450,000
Darbonne5020120,000
Evangeline1008060,000
Fontenot10120140,000



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Marked as best answer by 09madisonrousseau09 on Dec 3, 2019

bulacsom

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