Problem $8-1($Static$)$

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 compared to

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 either case.

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Using the above information, determine which location would produce the greater profit.

Answer is complete but not entirely correct.