You are employed by Wilson Aggregates, a company that produces limestone aggregate (crushed limestone) at several locations. Three major construction projects near Hazard City will require over 28 million tons of aggregate during the next three years.

Harry Wilson, the founder of Wilson Aggregates purchased several hundred acres of land with full mineral rights at each location where the Jessup Limestone outcrops along Routes 15 and 78. This wise purchase places Wilson Aggregates in a very strong position to under-price any other quarry that might supply crushed stone to this area. At present the closest quarry to these proposed development sites is owned by a competitor of Wilson Aggregates and is located approximately 20 miles east of the village of Baxter.

Your job is to determine which of these five locations will make the best quarry site based upon the total cost of stone delivered to these three projects. The quality of stone that can be produced at all three locations exceeds the requirements for all three of the construction projects. Because crushed stone costs about 15 cents per ton mile to transport, Wilson Aggregates should easily be the lowest price supplier of crushed stone to all three construction projects.

Your job is to determine which of the five locations will be the most profitable for supplying all of the stone needed for the three construction projects. Production costs and quantities of aggregate needed for the three projects are provided below.

 

Project	Tons Required
Federal Prison	1,000,000 tons
Lock and Dam	20,000,000 tons
Power Plant	7,000,000 tons

You will provide your analysis to the managers of Wilson Aggregates on the accompanying worksheet. Your analysis should show the estimated total cost of producing and delivering the crushed stone needed for the three construction projects for each potential quarry location. If you complete your work using a spreadsheet, a printed copy of your spreadsheet can be submitted in place of the worksheet.