Question
Can you please help me figure out this problem and how to do it on excel? 1.(20 pts.) A manufacturing firm is planning to open
Can you please help me figure out this problem and how to do it on excel?
1.(20 pts.) 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 $995 per unit.
Location Fixed CostVariable cost
USA $1,000,000 $210
Mexico $550,000 $250
Canada $700,000 $230
Panama $ 450,000 $300
a- Using cross-over analysis, find the range of production that makes each country 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 20,000 at increments of 500.
c- If the company forecasts that market demand will be around 17,000 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. In your graph, use quantity values from 0 to 20,000 at increments of 500.
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