Question: The fixed and variable costs for three potential manu- facturing plant sites for a rattan chair weaver are shown: Site 1 3 Fixed Cost per

The fixed and variable costs for three potential manu- facturing plant sites for a rattan chair weaver are shown: Site 1 3 Fixed Cost per Year $ 500 1,000 1,700 Variable Cost per Unit $11 7

a) Over what range of production is each location optimal?

b) For a production of 200 units, which site is best?

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