Should the company add Location A or Location B based on total construction plus operating cost and why?

A) Location B because it is cheaper by $350.
B) Location A because it is cheaper by $2500.
C) Location B because it is cheaper by $200.
D) Location A because it is cheaper by $200.

Total Construction Cost

The complete financial expenditure involved in constructing a building or infrastructure, encompassing material, labor, equipment, and indirect costs.

Operating Cost

Refers to the ongoing expenses associated with the running of a business, such as utilities, rent, payroll, and maintenance.

Location Decision

The process of selecting a geographical location for a company’s operations, facilities, or investments, considering factors such as cost, accessibility, and legal requirements.