8. Computers Unlimited sells microcomputers to universities and colleges on the EastCoast and ships them from three distribution warehouses. The firm is able to supplythe following numbers of microcomputers to the universities by the beginning of theacademic year: Four universities have ordered microcomputers that must be delivered and installed by the beginning of the academic year: The shipping and installation costs per microcomputer from each distributor to each university are as follows: The shipping and installation costs per microcomputer from each distributor to each university are as follows: a. To better meet demand at the four universities it supplies Computers Unlimited is considering two alternatives: (1) expand its warehouse at Richmond to a capacity of 600, at a cost equivalent to an additional $6 in handling and shipping per unit; or () purchase a new ware house in Charlotte that can supply 300 units with shipping costs of $19 to Tech, $26 toA & M, $22 to State, and $16 to Central. Which alternative should management select, based solely on transportation costs (i.e., no capital costs) (10)

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8. Computers Unlimited sells microcomputers to universities and colleges on the EastCoast and ships them from three distribution warehouses. The firm is able to supplythe following numbers of microcomputers to the universities by the beginning of theacademic year: Four universities have ordered microcomputers that m