Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

A. $105,200

B. $102,500

C. $100,250

D. $100,520

E. $105,500

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 550 units?

A. $105,200

B. $102,500

C. $100,250

D. $100,520

E. $105,500

Answer: 105,500

Which of the following circumstances would be least likely to lead to a need for a new location?

A. shifting of markets

B. depletion of basic inputs

C. growth in demand that is leading to greater utilization of existing capacity

D. the need to expand into new markets

E. the opportunity to take advantage of globalization trends

Answer: growth in demand that is leading to greater utilization of existing capacity

Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

A. access to end consumers

B. access to resources

C. proximity to customers

D. access to transportation infrastructure

E. access to productive labor

Answer: access to end consumers