Question: 8 Problem 1 (30 points) 9 The United Packaging Company (UPC) is a manufacturer of corrugated fireboard 10 shipping boxes used by companies across the

8 Problem 1 (30 points) 9 The United Packaging

8 Problem 1 (30 points) 9 The United Packaging Company (UPC) is a manufacturer of corrugated fireboard 10 shipping boxes used by companies across the United States. UPC is considering 11 an additional plant in each of two cities to be selected among the following 10 cities. 12 UPC has collected the fixed-cost and variable-cost data. The demand in each 13 of the following cities is assumed to be unformly 40,000 units per year. 14 15 fixed cost per 16 location 17 Atlanta, GA 18 Baltimore, MD 19 Chicago, IL 20 Denver, CO 21 Indianapolis, IN 22 Kansas, MO 23 Los Angeles, CA 24 Minneapolis, MN 25 New York, NY 26 Orlando, FL per unit cost variable year materials labor overhead $200,000 $0.60 $0.80 $0.40 $180,000 $0.85 $0.75 $0.75 $200,000 $0.40 $0.40 $1.00 $210,000 $0.40 $0.30 $0.40 $230,000 $0.50 $1.20 $0.80 $188,000 $0.40 $0.80 $0.20 $190,000 $0.20 $0.70 $1.00 $180,000 $0.30 $0.30 $0.30 $196,000 $0.60 $0.80 $0.40 $230,000 $0.20 $0.50 $0.50 27 28 29 30 01. Select the best city in terms of the minimum total cost and show the minimum total cost. 31 32 Q2. Select the second best city and show the total cost. 33 34

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