Case study $-$ Cost analysis

A farm implements dealer is seeking a fourth warehouse location to complement three existing warehouses. There are three locations: Hangzhou, Taiyuan, and Hunan, China.

Hangzhou would involve a fixed cost of RMB$4,000$ per month and a variable cost of RMB$4$ per unit;

Taiyuan would involve a fixed cost of RMB$3,500$ per month and a variable cost of RMB$5$ per unit; and

Hunan would involve a fixed cost of RMB$5,000$ per month and a variable cost of RMB$6$ per unit.

Use of the Hangzhou location would increase system transportation costs by RMB $19,000$ per month, Taiyuan by RMB$22,000$ per month, and Hunan by RMB $18,000$ per month.

Which location would result in the lowest total cost to handle $800$ units per month?