Problem $1$: $($Two answers required: One for Omaha; One for Kansas City; $2$ points$)$ A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $$185$ in cither case. Using the following information, determine which location would produce the greater profit.

$\backslash$table$[[,$Omaha,Kansas City$],[$Annual fixed costs $($$millions$),$$$1\mathrm{.}2,$$$1\mathrm{.}4$