Question: Country Fixed Cost ($) Variable Cost ($) = per unit cost * 130,000 Total Cost ($) PANAMA 1,500,000 300*130,000= 39,000,000 40,500,000 MEXICO 2,500,000 250*130,000= 32,500,000
| Country | Fixed Cost ($) | Variable Cost ($) = per unit cost * 130,000 | Total Cost ($) |
| PANAMA | 1,500,000 | 300*130,000= 39,000,000 | 40,500,000 |
| MEXICO | 2,500,000 | 250*130,000= 32,500,000 | 35,000,000 |
| USA | 4,000,000 | 230*130,000= 29,900,000 | 33,900,000 |
| CANADA | 7,000,000 | 210*130,000= 27,300,000 | 34,300,000 |
| Profit = (Annual market demand * Sale price per unit) - Total Cost | |||
| Profit= (130,000 * 795) -33,900,000 |
d- Construct Total cost, Total revenue, and Total profit graphs for the optimal location in part (C). Use quantity values from 0 to 200,000 at increment of 5,000.
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