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.

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