Q4. Heatwave, Inc. produces home heating systems that and has been seeing much growth in sales of their systems. They expect strong sales next year with forecasts of 180,000 units in the South, 120,000 units in the Midwest, 110,000 units in the East, and 100,000 units in the West. They are trying to setup the network for manufacturing plants and have the possibility of being located in one or more of the following places -New York, Atlanta, Chicago, and San Diego. Factories can have a capacity of 200,000 or 400,000 units. The table below shows the annual fixed costs at each possible site. It also show the cost of both producing the heating systems and transport along with the cost of both producing and transporting a heating system from the factories to the markets. (A) Assume that each manufacturing location can have at most one plant. Where should Heatwave build its factories and how large should they be? (B) How does the plan change if they are allowed to open multiple factories in each location if they would like? Annual fixed cost of 200,000 plant New York $6 million Atlanta $5.5 million Chicago San Diego $5.6 million $6.1 million Annual fixed cost $10 million $9.2 million $9.3 million $10.2 million of 400,000 plant East $211 $232 $238 $299 South $232 $212 $230 $280 Midwest $240 $230 $215 $270 West $300 $280 $270 $225