dolution

dolution.

A manufacturing firm is planning to open a new factory. There are four countries under consideration: USA, Canada, Mexico, and Panama. The table below lists the fixed costs and variable costs for each site. The product is mainly sold in the U.S. for $595 per unit. Location Canada Mexico USA Panama China Fixed Cost $7,000,000 $2,500,000 $4,000,000 $1,500,000 $3.000.000 Variable cost $210 $260 $230 $300 $270 a- Using cross-over analysis, find the range of production that makes each location optimal with lowest total cost. b- Using Excel, construct total production cost linear graph for all 5 locations and verify cross-over points obtained in part (a). In your graph, use quantity values from 0 to 200.000 at increment of 5,000. C- If the company forecasts that market demand will be around 160,000 per year, which country is the best choice and what is the yearly profit? d- Construct Total cost, Total revenue, and Total profit graphs for the optimal location in part (

dolution

 
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