A plastic manufacturing company is considering 2 alternative locations for a new facility. The management considered 2alternatives: Sta. Rosa and Sta. Rita. The fixed costs for Sta. Rosa is Php1M and variable cost is Php25 per unit. On the other hand,the fixed costs for Sta. Rita is Php1.5M and variable cost is Php23 per unit.1. If the company plans on producing 50,000 units which location would be more attractive?2. At what volume the two alternatives equal in cost?

given, fixed cost for ST.ROSA = Php1 M variable cost = Php 25 per unit

Answered: A plastic manufacturing company is…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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