10. Suppose that Farmers' Bank wishes to serve the nine customer clusters as shown in Figure 13-19. It has proposed locating a branch (A) at coordinates X, = 20, Y, = 20. A competing branch (B) is located at coordinates X, = 40, Y, = 30. Farmers' Bank is to be a full-service branch with a relative size (attractiveness) index of 1. The competing branch is a partial-line facility (no ATM, no drive- through capabilities) with a size index of 0.7. The travel time for customers to a bank is approximated as T(hours) = D/50, where D = distance in miles. The average customer generates $100 in gross annual revenue for a bank. Theestimate of annual operating expense for Farmers' branch is $300,000, and the facility will cost $650,000 (20-year life) on land worth $100,000. a. Apply Huff's retail gravity model to determine the branch's annual revenue. Assume a = 2. b. Considering the level of investment required and the operating expenses, should the branch be constructed? c. What additional information might you like to have before making a final decision?Figure 13-19 Y 50 Number of Potential 6 1,500 Customers for 7 4,000 Branch Banks in a 8 40 Region 2,000 5 1,000 30 Miles 4 7,000 20 2 2,000 1 1,000 3 4,000 10 9 1,000 10 20 30 40 50 Miles X