Find the range of production that makes each country optimal

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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.

Reference no: EM132862912

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