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An appliance company operates 3 production plants in the United States. After production, they ship the appliances to 4 regions of the country (North, South,

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An appliance company operates 3 production plants in the United States. After production, they ship the appliances to 4 regions of the country (North, South, East and West). The table below summarizes shipping costs per unit between all plants and regions, as well as plant capacities and estimated demands for each region. The appliance company wants to minimize shipping costs while meeting demand and without exceeding the plants' capacities. The sensitivity report is attached below. Suppose the market analyst for the appliance company revises her estimate for demand in the West. According to new data, demand in the West is expected to increase by 25 units. How will this change in demand affect the appliance company? North South East West Capacity Planti 150 230 180 290 450 Plant2 250 110 170 280 600 Plant3 180 200 260 120 500 Demand 450 200 300 300 O a. If demand in the West increases by 25 units, profits will increase by $3,000. 0 b. If demand in the West increases by 25 units, shipping costs will increase by $7,500. 0 c. If demand in the West increases by 25 units, shipping costs will increase by $3,000. 0 d. If demand in the West increases by 25 units, the company should ship 1 20 additional units to the West

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