A manufacturing firm is planning to open a new factory


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 $850 per unit. Location Fixed Cost Variable cost USA $400,000 $180 Mexico $100,000 $250 Canada $200,000 $200 Panama $ 60,000 $300 a- Find the range of production that makes each country optimal with lowest total cost. b- If the company forecasts that market demand will be around 5200 per year, what country is the best choice and what is the yearly profit?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: A manufacturing firm is planning to open a new factory
Reference No:- TGS01196656

Expected delivery within 24 Hours