B D E F H 53 54 Problem 3 (30 points) 55 Industrial Packaging Solutions (IPS) is a manufacturer of corrugated fireboard 56 shipping boxes used by companies across the United States. IPS is considering an additional plant in each of two cities to be selected among the following cities. 58 IPS has collected the fixed-cost and variable-cost data. The demand in each 59 of the following cities is assumed to be unformly 42,000 units per year. 57 60 SELEN 61 per unit cost fixed cost per variable 62 location year materials labor overhead 63 Atlanta, GA $0.60 $0.80 $0.40 64 Baltimore, MD $0.85 $0.75 $0.75 65 Chicago, IL $0.40 $0.40 $1.00 66 Denver, CO $0.40 $0.30 $0.40 67 Indianapolis, IN $0.50 $1.20 $0.80 68 Kansas, MO $0.40 $0.80 $0.20 69 Los Angeles, CA $0.20 $0.70 $1.00 70 Minneapolis, MN $0.30 $0.30 S0.30 71 New York, NY $0.60 S0.80 $0.40 72 Orlando, FL $0.20 $0.50 $0.50 73 74 Assume that the unit price is $22 75 76 01. Select the best city in terms of the annual profit and show the annual profit 77 78 Q2. Select the second best city and show the annual profit. 79 1 80 53 54 Problem 3 (30 points) 55 Industrial Packaging Solutions (IPS) is a manufacturer of corrugated fireboard 56 shipping boxes used by companies across the United States. IPS is considering 57 an additional plant in each of two cities to be selected among the following cities. 58 IPS has collected the fixed-cost and variable-cost data. The demand in each 59 of the following cities is assumed to be unformly 42,000 units per year. 60 61 per unit cost fixed cost per variable 62 location year materials labor overhead 63 Atlanta, GA $200,000 $0.60 $0.80 $0.40 64 Baltimore, MD $180,000 $0.85 $0.75 $0.75 65 Chicago, IL $170,000 $0.40 $0.40 $1.00 66 Denver, CO $210,000 $0.40 $0.30 $0.40 67 Indianapolis, IN $230,000 $0.50 $1.20 50.80 68 Kansas, MO $220,000 $0.40 $0.80 S0.20 68 Los Angeles, CA $190,000 $0.20 $0.70 $1.00 10 Minneapolis, MN $206,000 $0.30 ser $0.30 11. New York, NY $196.000 $0.60 SO: 50 S0.40 72 Orlando, FL $230,000 S0.20 $0.50 $0.50 73 Assume that the unit price is $22 TS 76 Select the best city in terms of the annual profit and show the annual profit. 74 78 Select the second best city and show the annual profit 79