The demand forecast for Mthembu Enterprises indicates significant growth over the next ten years and this requires the organization to build a new manufacturing facility. There are three potential sites, namely, KwaZulu Natal, Gauteng and Eastern Cape. The fixed and variable cost for each site is listed in the table below:

Potential Site Fixed Cost $($R$$s$)$ Variable Cost $($R$$s$)$

KwaZulu Natal

Fixed cost$=900000$

Variable cost$=75$

Gauteng

Fixed cost$=1500000$

Variable cost$=55$

Eastern Cape

Fixed cost$=2000000$

Variable cost$=45$

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Solve for crossover point KwaZulu Natal and Gauteng.

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Solve for crossover point Gauteng and Eastern Cape.

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Evaluate the optimum number of products for each site.