Question: Bindley Corporation has a one - year contract to supply motors for all washing machines produced by Rinso Ltd . Rinso manufactures the washers at

Bindley Corporation has a one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York City, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location:
New York City 60,000
Fort Worth 70,000
San Diego 105,000
Minneapolis 80,000
Bindley has three plants that can produce the motors. The plants and production capacities are
Boulder 105,000
Macon 135,000
Gary 120,000
Due to varying production and transportation costs, the profit Bindley earns on each 1,000 units depends on where they were produced and where they were shipped. The following table gives the accounting department estimates of the dollar profit per unit. (Shipment will be made in lots of 1,000.)

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