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5. a) You are in charge of ordering sandwiches for a lunch stand at Maple Leaf Square in Toronto. The sandwiches are made fresh and

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5. a) You are in charge of ordering sandwiches for a lunch stand at Maple Leaf Square in Toronto. The sandwiches are made fresh and unsold ones are donated to a local shelter at the end of the day. The sandwiches sell for $8.50 and cost you $3.75 to order. Your demand is uniformly distributed with a minimum of 100 sandwiches and a maximum of 600 . How many sandwiches should you order every day? 5 marks b) The operations manager for Fine Foods Distribution has narrowed the search for a new facility to seven communities. Fixed costs (land, buildings, and equipment) and variable costs (labour, materials etc.) are shown below. 15 marks Which of the communities can be eliminated from further consideration because they are dominated (both variable and fixed costs are higher) by another community? i. Plot the total cost curves for all remaining communities on a single graph. Identify on the graph the approximate range over which each community provides the lowest , cost. ii. Using locational break-even analysis, calculate the break-even quantities to determine the range over which each community provides the lowest cost. iii. If the company wants to produce 600,000 units, which location is preferred and what is the total cost

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