Your new drones have been successful in China and now you want to spread them to the world.
Your forecasts predict the following demands: the North American market will buy 500,000.
You predict that Europe will buy 400,000 and the rest of Asia can buy 1,000,000. You can continue to produce in China with your subcontractor; produce in Mexico, Produce in Europe, or in all three
Variable Costs from your contractor
Total volume given to one site.
China	$75.00
Mexico	$76.00
Europe	$80.00
Half the volume given to one site
China	$76.00
Mexico	$78.00
Europe	$81.00
Third of the volume given to one site
China	$79.00
Mexico	$80.00
Europe	$81.00
Variable Trans-shipment costs
		North America		Europe		Asia
China		22		23		20
Mexico		15		19		23
Europe		18		15		23
Question 1
Considering only production costs where would decide to do the bulk of your production? Give Numbers to back up answer.
Answer: