Question: Problem 1 A company like to choose a location for its new production facility. It was advised to choose one of the following locations: ARAR

Problem 1 A company like to choose a location for its new production facility. It was advised to choose one of the following locations: ARAR TURAIF RAFHA FIXED COST VARIABLE COST 200,000 180 300,000 140 460,000 100 If the sales price of one unit is 280. 1. Calculate Breakeven quantity for each location 2. Using the break-even point in the quantities, what is the best location? 3. What is the best location if the production volume equal 3000 unit? Problem 2 2. In the table, three sources A, B and C with the production capacity of 100 units, 400 units, 600 units of product respectively is given. Every day the demand of three markets D, E, F is to be furnished with at least 550 units, 450 units and 100 units of product respectively. The transportation costs are also given in the matrix. E F 5 5 7 100 100 B 5 9 12 400 400 1 450 100 600 1 4 6 SO SSO 450 100 1100 Find the total cost of transportation using the northwest corner method

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