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Business, 20.09.2019 19:00 senituliii

The grand prairie distributor referred your consulting firm to a close friend that is the owner of two fountain pen ink manufacturing plants in the united states. the manufacturing plants are located 2,760 miles apart in san diego, ca and new york, ny (driving distance—see map below). the owner wants to have a better understanding of the market reach for each manufacturing plant. he recognizes that any overlap between the two plants would result in wasteful spending and competition. the new york manufacturing plant has a production cost of approximately $45,000 per truckload of their premium fountain pen ink. they have negotiated an outbound rate of $2.45 per mile with a tl motor carrier. the san diego manufacturing plant also has a $45,000 production cost per truckload volume, but the san diego plant has been able to identify a backhaul on a non-competing private carrier. their outbound rate is $1.89 per mile. the ceo of your consulting firm has assigned this task to you. you need to provide the answer to "what is the market reach for both new york and san diego manufacturing facilities? "

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