Problem #$214$ pts $($not from text$)($this is an asset selection problem that takes into consideration fixed costs$)$

Utopia Company operates a plant in Avalon with a monthly capacity of $35,000$ units and a plant in

Bridgetown with a monthly capacity of $40,000$ units. Product is shipped to regional distribution centers

located in Riverdale, Seaside and Teatown.

The long$-$range planning group at Utopia reevaluated their forecasts and determined that due to an

anticipated increase in demand in the next $5$ years, the company should consider increasing

capacity by constructing a new plant in one or more of the following cities: Cedar, Daphne, Elm

or Florence.