A newly formed firm 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 compared to locating near the market, but the$$owners believe there would be a loss in sales volume because customers tend to favor local suppliers.$$Revenue per unit will be $$185$ in either case. Using the following information, determine which$$location would produce the greater profit.$$Omaha Kansas City$$Annual fixed costs $($$ millions$)$ $$1\mathrm{.}2$ $$1\mathrm{.}4$Variable cost per unit $$36$ $$47$Expected annual demand $($units$)8,00012,000$