Gce Model Questions Vol1 2021 Geography Question 4

A textile manufacturer is choosing between two possible sites for a new factory. **Site A**: distance to market 80 km, distance to raw‑material source 30 km, 120 workers, wage £12 h⁻¹. **Site B**: distance to market 120 km, distance to raw‑material source 20 km, 100 workers, wage £13 h⁻¹. Both sites use the same transport rates (finished product to market £0.05 t⁻¹ km⁻¹, raw material inbound £0.04 t⁻¹ km⁻¹). Annual production is 200 000 t of product. Each tonne of product requires 1.2 t of raw material. Workers work 8 h day⁻¹, 5 days week⁻¹, 48 weeks year⁻¹. Fixed overheads are £500 000 per year for either site. Calculate the total annual cost for each site and state which site is more economical. Give the total cost for each site in £ (rounded to the nearest thousand) and the preferred site.