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A toy manufacturer with the head office In Toronto, Ontario, plans to start producing three of its most successful mechanical Items In the Lower Malnland, B.C., so that they may offer better and faster service to thelr West Coast distributors. The management must choose a location. Thelr production volumes are not known yet, as they are awalting the forecast demand report from their planning department. Untll the decislons regarding the production rates are made, the operations manager has obtained the Information that follows about the average costs for three facilities located in the Lower Mainland (see the table below); all three respond in equal measure to their requirements, but only one will be acquired depending on the final decision regarding the production rates. Which is the best locauon corresponding to vaious ranges of production volume? SOLVE THE PROBLEM BOTH ANALYTICALLY AND GRAPHICALLY. THE "SHOW YOUR WORK DOCUMENT MUST INCLUDE THE GRAPH Surrey 20,00O Red Costs 35.00 3000 Average variable cost per toy question #5 Up to what production volume would North Vancouver be the location of cholce? Provide your numeric response without comma, without decimals and without units of measure. question #7 question #6 If the total demand forecast tuns out to be 5800 unlts per year, where should the company locate their Lower Mainland plant? What Is the minimum volume from which Surrey becomes the location of cholce? Write your numeric response without comma, without decimals and wlthout units of measure O Langley O Coqultlam O Surrey ONorth Vancouver None of the above

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