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Question 2 m.(15 Marks) A. An electronic instrument dealer is seeking a fourth warehouse location to complement three existing warehouses. There are three potential locations: Cairo, Amman, and Paris. Cairo would involve a fixed cost of $2000 per month and a variable cost of $2per unit; Amman would involve a fixed cost of $2500 per month and a variable cost of $3 per unit. Paris would involve a fixed cost of $2,500 per month and a variable cost of $3 per unit Use of the Cairo location would increase system transportation costs by $6,000 per month. Amman by $11,000 per month and Paris by $9,000 per month. Which location would result in the lowest total cost to handle 1600 units per month? (7.5 Marks) Given volume = 800 unit per month Monthly total cost =FC + FV + transportation cost B. Potential locations in Bahrain, Beirut, and Dubai have the cost structures shows in Table below for a product expected to sell for $260 (B-1) Find the most economical location for an expected volume of 3,000 units per year. (B-2) What is the expected profit if the site selected in (B-1) is used? Potential Location Fixed Cost/year Variable Cost / years Bahrain (A) $75000 $35.00 Beirut 100,000 25.00 Dubai (C) 200,000 12.50 (B)