Cost Benefti Analysis Weighing up thecosts of a business against potentialbenefits.
Break even to measure this
Contribution per unit = Sellingprice per unit variable costs perunit
Break even = Fixed costsdivided by contribution perunit
(level of sales to cover costs)
Manufactoring businesses providingbulky finished products need to belocated near to customers.
Manufactoring businesses starting with heavyraw materials producing lightweight endproducts need to be located near rawmaterials.
Good location needs a goodinfrastrucute (motorways, rail links,ports and airports)
required for import of raw materials,transport of finish products and gettingstaff to work
Must be located near support services(banking, IT assistance, engineeringassistance)
Must be near College/Universities,Affordable housing, schools, medical,leisure, room for expansion.
Government provide grants, loans ,equity investment and financial guidanceas incentives for some areas.
Located near owners house
Some areas have betterimage e.g London/Paris forfashion.
However internet madelocations more flexible.
Wondershare EdrawMind
