QUESTION $2$

Study the caselet provided below and answer the following questions.

The management of DGB Enterprises has narrowed down the site selection for a new manufacturing facility to three

potential locations $-$ A$,$ B and C$.$ The information provided below shows the annual fixed costs and variable costs per unit

of the product at each of three locations.

INFORMATION

After an extensive market survey, the operations analyst of DGB Enterprises has estimated a $775$ target selling price for

each unit of the product expected to be produced at the facility.

Formulate the cost functions for each of the three locations