A manufacturing firm is planning to open a new factory.There are four countries under consideration: USA, Canada, Mexico, and Panama.The table below lists the fixed costs and variable costs for each site.The product is mainly sold in the U.S. for $495 per unit.

Location Fixed CostVariable cost

Canada$5,000,000$210

Mexico$1,500,000$250

USA$3,000,000$230

Panama$ 500,000$300

a- Using cross-over analysis, find the range of production that makes each location optimal with lowest total cost.

b- Using Excel, construct total production cost linear graph for all 4 locations and verify cross-over points obtained in part (a).In your graph, use quantity values from 0 to 250,000 at increment of 10,000.

c- If the company forecasts that market demand will be around 150,000 per year, which country

is the best choice and what is the yearly profit?

d- Construct Total cost, Total revenue, and Total profit graphs for the optimal location in part (C).