A Company Wants to Determine Where They Should Locate a New

question 31

Multiple Choice

A company wants to determine where they should locate a new warehouse.They have two existing production plants and will have volume of shipping of 250 units a day.Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day.Using the centroid method, which of the following are the X and Y coordinates for the new plant location?

• A)(81,117)
• B)(88, 138)
• C)(117,102)
• D)(76,123)
• E)X and Y coordinates cannot be computed from the data given

---

Definitions:

Capital Investment Proposals

Suggestions for strategic investments in long-term assets, projects, or ventures aimed at enhancing a company's growth and profitability.

Fixed Asset

Long-term tangible property that a firm owns and uses in its operations to generate income, not expected to be consumed or converted into cash in the short term.

Useful Life

An estimate of the lifespan of an asset during which it is expected to remain productive or useful for the purposes it was acquired.

Residual Value

The estimated value that an asset is expected to have at the end of its useful life, after depreciation has been taken into account.