Supreme Redeem, Inc $\text { Which location should be chosen, based on total weighted score? }$

question 67

Multiple Choice

Supreme Redeem, Inc. plans to open a large manufacturer's rebate processing center. Supreme has narrowed the potential sites to three locations. Data for each location are provided in the following table. (A score of 1 is least favorable and 5 is most favorable.) $\begin{array}{ll|lll}&&&\text { Location }\\\text { Factors } & \text { Weight } & \text { Phoenix }&\text { Miami } &\text { Detroit } \\\text { Cost to process rebate } & 0.45 & 3 & 3 & 4 \\\text { Cost of living } & 0.20 & 3 & 4 & 5 \\\text { Transportation } & 0.15 & 4 & 5 & 3 \\\text { Union activities } & 0.05 & 5 & 3 & 2 \\\text { Recreation } & 0.15 & 4 & 4 & 3\end{array}$ $\text { Which location should be chosen, based on total weighted score? }$

• A) Phoenix
• B) Miami
• C) Detroit
• D) None of the above

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Definitions:

Times Interest Earned

A financial metric indicating how many times a company's operating income can cover its interest expense, used to assess financial stability.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expense is a non-operating cost shown on the income statement.

Current Ratio

A financial metric assessing a firm's capability to meet its short-term liabilities or debts due within a year.