A manufacturer of men's shirts can produce a dress shirt in its Houston, Texas, plant for $8 per shirt (including the cost of raw materials). Chicago is a major market for a demand of 100,000 shirts per year. The shirt is priced at $15 at Houston plant. Transportation and storage charges from Houston to Chicago amount to $5 per hundredweight (cwt.). Each packaged shirt weighs 1 pound. Note that 1 cwt = 100 lb.

As an alternative, the company can have the shirts produced in Taiwan for $4 per shirt (including the cost of raw materials). It is estimated that the cost to set up and maintain a good relationship with the Taiwan supplier is $200,000 per year. The raw materials, weighing about 1 pound per shirt, would be shipped from Houston to Taiwan at a cost of $2 per cwt. When the shirts are completed, they are to be shipped directly to Chicago at a transportation and storage cost of $6 per cwt. An import duty of $0.50 per shirt is assessed.

1. From a logistics-production cost standpoint, where the shirts should be produced given that the current annual demand is 100,000? Show your analysis on worksheet below.
2. At what annual demand level, will the company be indifferent in choosing the two locations? Use Goal-Seek to find the breakeven point (round off at two-digit after decimal) and show your analysis on worksheet below.

Please show the before and after of A and the before and afer of B of the goal seak and analysis. Please.

a)		Houston		Taiwan
Production Cost/shirt
Product Transportation Cost/shirt
(Houston to Chicago)
Product Transportation Cost/shirt
(Taiwan to Chicago)
Material Transportation Cost/shirt
(Houstan to Taiwan)
Import Duty/shirt
Cost for Supplier Relationship
Price
Annaual Demand
Total Reveue
Total Costs
Total fixed cost
Toal variable cost
Profit
	Difference