In Solved Problem C.1, Williams Auto Top Carriers proposed opening a new plant in either New Orleans or Houston. Management found that the total system cost (of production plus distribution) would be $20,000 for the New Orleans site. What would be the total cost if Williams opened a plant in Houston? At which of the two proposed locations (New Orleans or Houston) should Williams open the new facility?

Data From Solved Problem C.1:

Williams Auto Top Carriers currently maintains plants in Atlanta and Tulsa to supply auto top carriers to distribution. centers in Los Angeles and New York. Because of expanding demand, Williams has decided to open a third plant and has narrowed the choice to one of two cities-New Orleans and Houston. Table C.3 provides pertinent production and distribution costs as well as plant capacities and distribution demands. Which of the new locations, in combination with the existing plants and distribution centers, yields a lower cost for the firm?