Reference no: EM132099466

1. Briefly discuss the bargaining process and the bargaining goals and strategies of a union and an employer.

2. A manufacturing firm is planning to open a new factory. There are four countries under consideration: USA, Canada, Mexico, and Panama. The table below lists the fixed costs and variable costs for each site. The product is mainly sold in the U.S. for $950 per unit.

Location               Fixed Cost      Variable cost

USA                     $500,000          $210

Mexico                $150,000          $250

Canada                 $300,000          $230

Panama                $ 50,000            $300

a- Using cross-over analysis, find the range of production that makes each country optimal with lowest total cost.

b- Using Excel, construct total production cost linear graph for all 4 locations and verify cross-over points obtained in part (a). In your graph, use quantity values from 0 to 11,000 at increment of 200.

c- If the company forecasts that market demand will be around 8000 per year, which country is the best choice and what is the yearly profit?

d- Construct Total cost, Total revenue, and Total profit graphs for the optimal location.