3 0.4 points eBook References A newly formed company must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe that there would be a loss in sales volume because customers tend to favour local suppliers. Revenue per unit will be $220 in either case. Annual fixed costs ($ millions) Variable cost per unit Expected annual demand (units) Near Raw Materials $0.95 $ 36 6,900 Near Customers $1.05 $ 39 9,700 1. Using the above given information, determine the profits for each alternative. (Negative answers should be indicated by a minus sign.) Near raw materials Near customers $ $ 2. Which location would produce greater profit. Near raw materials O Near customers Check my work