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Sycamore Plastics ( SP ) is a manufacturer of polyethylene plastic pellets used as a raw material by manufacturers of plastic goods around the U

Sycamore Plastics (SP) is a manufacturer of polyethylene plastic pellets used as a
raw material by manufacturers of plastic goods around the U.S. SP currently operates four
manufacturing centers in Philadelphia, PA; Atlanta, GA; St. Louis, MO; and Salt Lake City, UT.
The plants have different capacities and production costs as indicated in the table below.
PLANT
MAXIMUM CAPACITY
(\times 100,000 LBS.)
PROD. COST
(PER 1,000 LBS.)
Philadelphia 7.5 $325.00
Atlanta 9.0 $275.00
St. Louis 12.0 $305.00
Salt Lake City 10.3 $250.00
SP currently has six contract customers located in New Y

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