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Question - A manufacturing firm is planning to open a new factory. There are four countries under consideration: USA, Canada, Mexico, and Panama. The table below lists the fixed costs and variable costs for each site. The product is mainly sold in the U.S. for $850 per unit.
Location
Fixed Cost
Variable cost
USA
$400,000
$180
Mexico
$100,000
$250
Canada
$200,000
$200
Panama
$60,000
$300
Required - Find the range of production that makes each country optimal with lowest total cost.
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