$1.$ If Matt could design a new network from scratch, I recommend locating a plant in the South$-$Central region of the United States, such as Dallas, Texas. This would help to reduce transportation costs and improve delivery times for customers in that region. The lines that should be included in the plant would depend on the specific products being produced, but could include plastic products, electronics, and appliances. If transportation costs were half of their current value, the decision would be different because the cost of serving customers in other regions would be lower. This would allow for more flexibility in terms of where to locate plants and what lines to include. If transportation costs were double their current value, the decision would be different because the cost of serving customers in other regions would be higher, which could make it more difficult to justify adding a plant in certain regions. Final answer: In summary, the annual cost of serving the entire nation from Chicago would be $$3,000,000.$ If transportation costs were half of their current value, the decision would be different because the cost of serving customers in other regions would be lower, which could allow for more flexibility in terms of where to locate plants and what lines to include. If transportation costs were double their current value, the decision would be different because the cost of serving customers in other regions would be higher, which could make it more difficult to justify adding a plant in certain regions.