Problem $8-1($Algo$)$

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs compared to

$3$

locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $$179$ in either case.

points

$\backslash$table$[[$Annual fixed costs $($ $ millions$),$$$1\mathrm{.}0,$$$1\mathrm{.}1$