Musuk Spices Company (MSC), Delhi, India, plans to set up a new plant at one of the following two locations: Bhopal and Agra in India. The fixed costs per year will be $ 450,000 and $ 300,000 per year for Bhopal and Agra respectively. The variable costs per pound are expected to be $ 10/lb. for Bhopal and $ 14/lb. for Agra respectively. The selling price is expected to be $ 30/lb.

Part 4 of Musk company problem.

Which plant should be selected given the next customer order is exactly for 37,500 lbs?