A railroad company has a network sketched below. The freight volumes in an O-D matrix (in tons/day) illustrated below must be transported. F = fixed cost = 5 $/track-mile per hour V - variable cost = 0.02 $/ton-mile K - equivalent fixed cost of building a new track - 50 $/track-mile per hour What is the present total cost ($/day)? total cost = total fixed cost + total variable cost How can the network be modified to minimize total cost? Find the threshold value of K. to minimize the total cost by constructing a new line linking stations B and C. A railroad company has a network sketched below. The freight volumes in an O-D matrix (in tons/day) illustrated below must be transported. F = fixed cost = 5 $/track-mile per hour V - variable cost = 0.02 $/ton-mile K - equivalent fixed cost of building a new track - 50 $/track-mile per hour What is the present total cost ($/day)? total cost = total fixed cost + total variable cost How can the network be modified to minimize total cost? Find the threshold value of K. to minimize the total cost by constructing a new line linking stations B and C