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5 A . You work for a firm that makes tables. Your company makes 2 types of tables that sell equally well for the same

5A. You work for a firm that makes tables. Your company makes 2 types of tables that sell equally well for the same price, and you can always sell as many as you can make. Each month your firm can make 100 tables of either type or a combination of the two. Type A takes 5 units of wood and 1 unit of metal and Type B uses 2 units of wood and 3 units of metal. Assume each unit of wood costs $20 and each unit of metal costs $15. Assume it costs $1, unit/mile to ship wood and $2/unit/mile to ship metal, and $5/table/mile to ship your final product. Your current location (Site A) is 100 miles from where you get wood, 60 miles from where you get metal and 40 miles from the market.
(2 points) How many of each table are you going to make each month at these costs?
(1 point) What's the lowest homemade cost for tables that would leave your business viable in this market?
5B.(3 points) Suppose there's a new site available (Site B) that's the same distance from the market but 60 miles from where you get wood and 100 miles from where you get metal. Will you move? If yes, what's the most you'd be willing to pay in relocation costs? if no, how much would you need in government incentives beyond relocation costs to move? What assumptions did you use when making this decision? (Both relocation costs and government incentives are up-front, one-time amounts.)
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