A large firm is contemplating construction of a new manufacturing facility. The two leading locations are Toledo and Cincinnati. The new factory would have a supply capacity of 160 units per week. Transportation costs from each potential location and existing locations are shown in the following table. Determine which location would provide the lower transportation costs. (Omit the "tiny_mce_markerquot; sign in your response.)
From
Toledo to Cost
per Unit From
Cincinnati to Cost
per Unit
A $20 A $7
B 18 B 17
C 13 C 13
Location Transportation Cost
Toledo $
Cincinnati $
Thus, location provides the lower transportation costs.