Question: To support its growing sales, PLE is considering adding additional plants. The capacities of the proposed plants and the fixed costs of construction can be

To support its growing sales, PLE is considering adding additional plants. The capacities of the
proposed plants and the fixed costs of construction can be found in the PLE database. If a new
plant is constructed, only one of the two potential capacities can be considered. Locations being
considered are Birmingham, Alabama; Singapore; Frankfurt, Germany; Mumbai, India; and
Auckland, New Zealand. Other options are to increase the capacities of the existing plants in
Kansas City and Santiago. Fixed costs of constructing new facilities or expanding the existing
plants can be found in the PLE database.

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