Xerox is trying to determine how many maintenance centers are needed in the mid-Atlantic states. Xerox earns $500 profit (excluding the cost of running maintenance centers) on each copier sale. The sales of copiers in each major market (Boston, New York, Philadelphia, Washington, Providence, and Atlantic City) depend on the proximity of the nearest maintenance facility. If a maintenance facility is within 100 miles of a city, sales will be high; if a maintenance facility is within 150 miles of a city, sales will be medium; otherwise, sales will be low.

The predicted annual sales (that is, the meaning of low, medium, and high) are listed in the file P08_36.xlsx. It costs $200,000 per year to place a maintenance representative in a city. It is possible to locate a representative in any city except for Atlantic City and Providence. The distances between the cities are listed in the same file. Where should maintenance representatives be located?

Skill-Extending Problems