Call Centers, Ltd AWhat Is the Total Weighted Score for Each of the Model

question 35

Essay

Call Centers, Ltd. has decided to use the weighted scoring model approach to aid the company in finding new locations for major call centers. Given below is information regarding four potential locations. (A score of 1 is least favorable and 5 is most favorable.)
$\begin{array}{ll|llll}&&&\text { Location }\\\text { Factors }& \text { Weight }&A&B&C&D\\\text { Labor cost/hour } & 0.50 & 3 & 5 & 4 & 3 \\\text { Labor availability } & 0.25 & 5 & 4 & 3 & 4 \\\text { Government regulations } & 0.15 & 5 & 2 & 4 & 5 \\\text { Transportation } & 0.10 & 4 & 3 & 5 & 4\end{array}$
a.What is the total weighted score for each of the three locations?
b.Which location should be chosen, based on total weighted score?

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Definitions:

Accumulated Depreciation

The total depreciation that has been recorded for an asset over its useful life.

Gain On Sale

The profit earned from the sale of an asset above its book value.

GAAP

A set of widespread accounting rules and standards, referred to as Generally Accepted Accounting Principles, used for financial reporting.

Fair Value

The estimated market value of an asset or liability, reflecting the amount at which it could be bought or sold in a current transaction between willing parties.