Location Fixed Cost Variable cost

Canada $7,000,000 $210

Mexico $2,500,000 $250

USA $4,000,000 $230

Panama $1,500,000 $300

China $3,000,000 $270

Using cross-over analysis, find the range of production that makes each location optimal with lowest total cost.

Using Excel, construct total production cost linear graph for all 5 locations and verify cross-over points obtained in part (a). In your graph, use quantity values from 0 to 200,000 at increment of 5,000.

If the company forecasts that market demand will be around 130,000 per year, which country is the best choice and what is the yearly profit?

Provide steps on how to solve & input on excel spreadsheet.