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Detroit, Rockford, and Madison are the proposed new factory locations. The Detroit and Madison proposed factories have other added benefits. Detroit can acquire fiberglass for $2 less a gallon than the other plants. Madison on the other hand can acquire labor for $1 less an hour than the other plants. The total cost savings are shown below for the Detroit and Madison Plant.
Detroit Plant =
Fiberglass less $2/gal ? Total Savings 2gal/shower*-$2gal*150showers= -$600
Madison Plant =
Labor less $1/hr ? Total Savings 3hrs/shower*-$1hr*150showers= -$450
1 Shower = 2 gallons of fiberglass + 3 hours of labor
When using the data above and applying it to the "Northwest Corner Rule" the following results would be true...
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