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Europe

(Non EU)

1.8 2 1.2 1 1.8 1.6 1.5

Japan 1.7 1.9 1.8 1.8 1 1.2 1.9

Rest of

Asia /Australia

2 2.2 1.7 1.6 1.2 1 1.8

Africa 2.2 2.2 1.4 1.5 1.9 1.8 1

Variable Productio n Costs, Transpor tation Costs and Dut ies From Plants to Markets 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sleekfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

S.

America   7.18 6.30 7.52 9.30 7.73 10.47 10.88

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sturdyfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

Rest of

Asia   7.36 9.64 7.17 8.34 6.65 6.00 9.75

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Market Demand s and Duties 

Markets N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

SleekfonDemand

10 4 20 3 2 2 1

Sturdyfon

Demand

12 1 4 8 7 3 1

Total 22 5 24 11 9 5 2

Import

Duties

(%)

3 20 4 15 4 22 25

Plant Capacit ies and Cos ts 

Capacity FixedCost /

year 

VariableCost /

Unit

Europe

(EU)

20 100 6

Sleekfon N.

America

20 100 5.5

S.

America

10 60 5.3

Europe

(EU)

20 100 6

Sturdyfon N.

America

20 100 5.5

Rest of

Asia

10 50 5

Transporta t ion Costs 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

 N.America

1 1.5 1.5 1.8 1.7 2 2.2

S.

America

1.5 1 1.7 2 1.9 2.2 2.2

Europe

(EU)

1.5 1.7 1 1.2 1.8 1.7 1.4

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Europe

(Non EU)

1.8 2 1.2 1 1.8 1.6 1.5

Japan 1.7 1.9 1.8 1.8 1 1.2 1.9

Rest of

Asia /Australia

2 2.2 1.7 1.6 1.2 1 1.8

Africa 2.2 2.2 1.4 1.5 1.9 1.8 1

Variable Productio n Costs, Transpor tation Costs and Dut ies From Plants to Markets 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sleekfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

S.

America   7.18 6.30 7.52 9.30 7.73 10.47 10.88

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sturdyfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

Rest of

Asia   7.36 9.64 7.17 8.34 6.65 6.00 9.75

Quant i ty Shipped 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   0.00 0.00 20.00 0.00 0.00 0.00 0.00

Sleekfon N.

America   10.00 0.00 0.00 3.00 2.00 2.00 0.00

S.

America   0.00 4.00 0.00 0.00 0.00 0.00 1.00

Demand   0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cost for Sleekfon = 564.39$

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Market Demand s and Duties 

Markets N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

SleekfonDemand

10 4 20 3 2 2 1

Sturdyfon

Demand

12 1 4 8 7 3 1

Total 22 5 24 11 9 5 2

Import

Duties

(%)

3 20 4 15 4 22 25

Plant Capacit ies and Cos ts 

Capacity FixedCost /

year 

VariableCost /

Unit

Europe

(EU)

20 100 6

Sleekfon N.

America

20 100 5.5

S.

America

10 60 5.3

Europe

(EU)

20 100 6

Sturdyfon N.

America

20 100 5.5

Rest of

Asia

10 50 5

Transporta t ion Costs 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

 N.America

1 1.5 1.5 1.8 1.7 2 2.2

S.

America

1.5 1 1.7 2 1.9 2.2 2.2

Europe

(EU)

1.5 1.7 1 1.2 1.8 1.7 1.4

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Europe

(Non EU)

1.8 2 1.2 1 1.8 1.6 1.5

Japan 1.7 1.9 1.8 1.8 1 1.2 1.9

Rest of

Asia /Australia

2 2.2 1.7 1.6 1.2 1 1.8

Africa 2.2 2.2 1.4 1.5 1.9 1.8 1

Variable Productio n Costs, Transpor tation Costs and Dut ies From Plants to Markets 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sleekfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

S.

America   7.18 6.30 7.52 9.30 7.73 10.47 10.88

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sturdyfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

Rest of

Asia   7.36 9.64 7.17 8.34 6.65 6.00 9.75

Quant i ty Shipped 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   0.00 0.00 4.00 8.00 0.00 0.00 1.00

Sturdyfon N.

America   12.00 1.00 0.00 0.00 0.00 0.00 0.00

Rest of

Asia   0.00 0.00 0.00 0.00 7.00 3.00 0.00

Demand   0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total cost for Sturdyfon = 512.68

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Capacity

7.00

7.00

0.00

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Market Demand s and Duties 

Markets N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

SleekfonDemand

10 4 20 3 2 2 1

Sturdyfon

Demand

12 1 4 8 7 3 1

Total 22 5 24 11 9 5 2

Import

Duties

(%)

3 20 4 15 4 22 25

Plant Capacit ies and Cos ts 

Capacity FixedCost /

year 

VariableCost /

Unit

Europe

(EU)

20 100 6

Sleekfon N.

America

20 100 5.5

S.

America

10 60 5.3

Europe

(EU)

20 100 6

Sturdyfon N.

America

20 100 5.5

Rest of

Asia

10 50 5

Transporta t ion Costs 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

 N.America

1 1.5 1.5 1.8 1.7 2 2.2

S.

America

1.5 1 1.7 2 1.9 2.2 2.2

Europe

(EU)

1.5 1.7 1 1.2 1.8 1.7 1.4

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Europe

(Non EU)

1.8 2 1.2 1 1.8 1.6 1.5

Japan 1.7 1.9 1.8 1.8 1 1.2 1.9

Rest of

Asia /Australia

2 2.2 1.7 1.6 1.2 1 1.8

Africa 2.2 2.2 1.4 1.5 1.9 1.8 1

Variable Productio n Costs, Transpor tation Costs and Dut ies From Plants to Markets 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sleekfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

S.

America   7.18 6.30 7.52 9.30 7.73 10.47 10.88

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sturdyfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

Rest of

Asia   7.36 9.64 7.17 8.34 6.65 6.00 9.75

Quant i ty Shipped 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   0.00 0.00 4.00 11.00 0.00 0.00 2.00

Sleekfon N.

America   16.00 0.00 0.00 0.00 4.00 0.00 0.00

S.

America   0.00 5.00 0.00 0.00 0.00 0.00 0.00

Europe

(EU)   0.00 0.00 20.00 0.00 0.00 0.00 0.00

Sturdyfon N.

America   6.00 0.00 0.00 0.00 0.00 0.00 0.00

Rest of

Asia   0.00 0.00 0.00 0.00 5.00 5.00 0.00

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Demand   0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cost for Merged Network = 1066.82

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Capacity

3.00

0.00

5.00

0.00

14.00

0.00

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Market Demand s and Duties 

Markets N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

SleekfonDemand

10 4 20 3 2 2 1

Sturdyfon

Demand

12 1 4 8 7 3 1

Total 22 5 24 11 9 5 2

Import

Duties

(%)

3 20 4 15 4 22 25

Plant Capacit ies and Cos ts 

Capacity FixedCost /

year 

VariableCost /

Unit

Fixed coston scale

 back 

Scale back

capacity

Fixed cost onshut down

Europe

(EU)

20 100 6

70 10 20

Sleekfon N.

America

20 100 5.5

70 10 20

S.

America

10 60 5.3

12

Europe(EU)

20 100 670 10 20

Sturdyfon N.

America

20 100 5.5

70 10 20

Rest of

Asia

10 50 5

10

Transporta t ion Costs 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Aust

ralia

Africa

 N.

America

1 1.5 1.5 1.8 1.7 2 2.2

S.

America

1.5 1 1.7 2 1.9 2.2 2.2

Europe

(EU)

1.5 1.7 1 1.2 1.8 1.7 1.4

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Europe

(Non EU)

1.8 2 1.2 1 1.8 1.6 1.5

Japan 1.7 1.9 1.8 1.8 1 1.2 1.9

Rest of

Asia /Australia

2 2.2 1.7 1.6 1.2 1 1.8

Africa 2.2 2.2 1.4 1.5 1.9 1.8 1

Variable Productio n Costs, Transpor tation Costs and Dut ies From Plants to Markets 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sleekfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

S.

America   7.18 6.30 7.52 9.30 7.73 10.47 10.88

Europe

(EU)   7.88 10.24 7.00 9.03 8.31 10.49 10.50

Sturdyfon N.

America   6.50 9.40 7.48 9.15 7.69 10.25 10.88

Rest of

Asia   7.36 9.64 7.17 8.34 6.65 6.00 9.75

Quant i ty Shipped 

 N.

America

S.

America

Europe

(EU)

Europe

(Non EU)

Japan Rest of

Asia/Australia

Africa

Europe

(EU)   0.00 0.00 5.00 11.00 0.00 0.00 2.00

Sleekfon N.

America   20.00 0.00 0.00 0.00 0.00 0.00 0.00

S.

America   2.00 5.00 0.00 0.00 3.00 0.00 0.00

Europe

(EU)   0.00 0.00 19.00 0.00 1.00 0.00 0.00

Sturdyfon N.

America   0.00 0.00 0.00 0.00 0.00 0.00 0.00

Rest of

Asia   0.00 0.00 0.00 0.00 5.00 5.00 0.00

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Demand   0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cost for Merged Network = 988.93

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Scale

 back 

Shut

down

Plant

unaffected

Capacity

0.00 0.00 1.00 2.00

0.00 0.00 1.00 0.00

0 0.00 1.00 0.00

0.00 0.00 1.00 0.00

0.00 1.00 0.00 0.00

0.00 0.00 1.00 0.00