Location Analysis Practice Problems 1) A company is considering moving to the southwest Virginia area and building a new manufacturing plant. They have selected four potential cities where the plant can be built: Roanoke, Blacksburg, Christiansburg, and Pulaski. However, due to differences between the cities in terms of the price of land, availability of materials and labor, etc., the yearly fixed costs and per-unit variable costs will be different. Below is a table summarizing the fixed and variable costs for each location. I Roanoke Fixed Cost $ Variable Cost $ 800,000.00 In-class problems Blacksburg $ 450,000.00 35.00 $ Christiansburg Pulaski $ 575,000.00 $ 45.00 $ 65.00 $ A: Plot the total cost functions for each location, assuming the company plans to produce anywhere between 0 and 10,000 units. B: Which site alternatives are optimal, and over that ranges of production volume? 700,000.00 35.00 C. Is there a city which will never be chosen? Which one(s), and why?

Location Analysis Practice Problems In-class problems 1) A company is considering moving to the southwest Virginia area and building a new manufacturing plant. They have selected four potential cities where the plant can be built: Roanoke, Blacksburg, Christiansburg, and Pulaski. However, due to differences between the cities in terms of the price of land, availability of materials and labor, etc., the yearly fixed costs and per-unit variable costs will be different. Below is a table summarizing the fixed and variable costs for each location. A: Plot the total cost functions for each location, assuming the company plans to produce anywhere between 0 and 10,000 units. B: Which site altemstives are optimal, and over that ranges of production volume? C. Is there a city which will sever be chosen? Which eoe(s), and why