Question: This question is for 20 marks please can you ensure you answer for 20 marks. Thank you in advance PepsiCo is contemplating locating its state-of-the-art

This question is for 20 marks please can you ensure you answer for 20 marks. Thank you in advance This question is for 20 marks please can you
PepsiCo is contemplating locating its state-of-the-art factory in any of these three sites Durban (A), Bulawayo (B) and Gaborone (C). The goal is to locate the factory at a minimum cost site, where cost is measured by annual fixed plus variable costs of production. The following information has been presented to you, PepsiCo knows that it will produce between 0 and 60000 units at the new plant each year, but this is the available knowledge regarding its production plans thus far. Provide advice using a relevant diagram on what values of volume of production if any is site C a recommended site? What volume indicates site A is optimal and over what range of volume is site B optimal and why. (Show all necessary calculations in your report)

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