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The Martin - Beck Company operates a plant in St . Louis with an annual capacity of 3 0 , 0 0 0 units. Product
The MartinBeck Company operates a plant in St Louis with an annual capacity of units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, MartinBeck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas City. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows:
Proposed Plant Annual Fixed Cost Annual Capacity
Detroit $
Toledo $
Denver $
Kansas City $
The companys longrange planning group developed forecasts of the anticipated annual demand at the distribution centers as follows:
Distribution Center Annual Demand
Boston
Atlanta
Houston
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