Hansen Controls has been awarded a contract for a large number of control panels. To meet this demand, it will use its existing plants in Houston and Tulsa, and consider new plants in Portland, St. Louis and Lexington. Finished control panels are to be shipped to Denver, Kansas City and Seattle. Pertinent information is given in the table.

Sources	Construction Cost	Shipping Cost to Destination:			Capacity
		Denver 1	Kansas City 2	Seattle 3
1- Houston	----	6	8	7	14,000
2- Tulsa	----	6	9	13	9,000
3- Portland	500,000	11	8	5	11,000
4- St. Louis	450,000	8	3	10	8,000
5- Lexington	400,000	10	6	14	10,000
	Demand	11,000	10,000	15,000

We develop a transportation model as an LP that includes provisions for the fixed costs (construction costs in this case) for the three new plants. The solution of this model would reveal which plants to build and the optimal shipping schedule.

Let	xij = the number of panels shipped from source i to destination j
	yi = 1 if plant i is built, = 0 otherwise (i = 3, 4, 5)

What is the minimum construction budget needed to make sure this problem has a feasible solution?

500,000

950,000

850,000

400,000

450,000