The location subcommittee’s final report to the board has focused on three acceptable communities. Table 15b in the appendix to the report indicates that the cost of locating in communities 1, 2, and 3 is approximately €400,000, €500,000, and €600,000 per year (respectively), mortgaged over 30 years. Paragraph 2 on page 39 of the report indicates that the variable cost per unit of product will increase 15 percent in community 1 but decrease 15 percent in community 3, owing to differences in labor rates. As plant manager, you know that variable costs to date have averaged about €3.05 per unit, and sales for the next decade are expected to average 20 percent more than the last 10 years, during which annual sales varied between 40,000 and 80,000 units. Which location would you recommend?