A Company Wants to Determine Where It Should Locate a New

question 16

Multiple Choice

A company wants to determine where it should locate a new warehouse. It has two existing production plants 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.

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Definitions:

Transactions Reasons

The underlying motives or justifications for conducting financial transactions or business operations.

Opportunity Costs

The price paid for not selecting the immediate alternative choice during decision-making.

Collection Float

The time period between when a check is deposited into a bank account and when the funds are available for use, affecting the cash flow of a business.

Net Float

The difference between checks written against a checking account and those that have been cleared by the bank.