A Manufacturing Firm Is Considering Two Locations for a Plant

question 54

Multiple Choice

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows

If the annual demand will be 20,000 units, what would be the cost advantage of the better location?

• A)$20,000
• B)$460,000
• C)$480,000
• D)$80,000
• E)$60,000

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Definitions:

Social Responsibility

The obligation of a company to act in ways that benefit society at large, beyond its own interests and legal requirements.

Marketing Concept

The idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization’s goals.

Sustainability

Refers to the practice of meeting current needs without compromising the ability of future generations to meet theirs, emphasizing environmental, social, and economic stability.

Social Entrepreneurship

The practice of starting businesses with the aim of solving social problems or effecting social change, prioritizing social impact over profit.