Your company produces and sells drugs at several different locations. The decision about where to produce goods for each sales location can have a huge impact on profitability. The model here is similar to • The sales price of each drug depends on where the drug is sold. For example, each product sold in Location 2 is sold for $40. • (ach of the six plants can produce up to 6 million units per year. • The annual demand (in millions) for your product in each location is as follows: the model used in this chapter to determine where drugs should be produced. Use the following assumptions: • You produce drugs at six locations and sell to customers in six different areas. • The tax rate and variable production cost depend on the location where the drug is produced. For example, any units produced at Location 3 cost $6 per unit to produce; profits from these goods are taxed at 20 percent.