# solution

1. Company Z wants to find a new place for a distribution center. They recently had some research and feasibility studies around the city and came up with four candidate locations. They were able to collect all the relevant costs of this investment under two main categories: fixed costs and variable costs. Based on the analysis the list of each cost type for all candidate locations are as follows:
 Fixed Variable Cost Cost Alternative A 125000 27 Alternative B 175000 30 Alternative C 150000 20 Alternative D 200000 13
1. Using the above table please approximate total cost of each investment candidate with a linear equation and write them for all four them. (25 points)
2. Please plot all of the equations you listed above on a two dimensional graph considering maximum yearly operation quantity/volume can be maximum 10000 units. (15 points) (Hint: use total cost as y axis and the yearly operating quantity/volume as the x axis)
3. Indicate which one(s) are the preferable option in terms of cost based on the total cost plot you have provided above. (10 points)
4. Calculate the exact quantities that change preferred alternative on the graph (i.e. the intersection points of the lines which belong to least cost alternatives) (10 Points) 