Two alternative locations are under consideration for a new plant: Jackson Mississippi and Dayton Ohio. The Jackson location is superior in terms of costs. However management believes that sales volume would decline if this location were chosen because it is farther from the market and the firm s customers prefer local supplies. The selling price of the product is $250 per unit in either case. Use the information in the table attached to determine which location yields the higher total profit per year.
1500000
502800000
85Annual
Variable
Forecast
Location
Fixed Cost
Cost per Unit
Demand per Year
Jackson
Dayton
30000 units
40000 units
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