Two alternative locations are under consideration (or a new plant: Jackson. Mississippi and Dayton Ohio, the Jackson location is superior In terms of costs. However, management believes that sales volume would decline if this location were chosen because it is farther from the market, and the firm’s customers prefer local suppliers. The selling price of the product is $250 per unit in either case. Use the following information to determine which location yields the higher total profit peryear.

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Forecast Demand per Year 30,000 units 40,000 units AnnualVariable Location Fixed Cost Cost per Unit Jackson $1,500,000 $50 Dayton $2,800,000 $85