Question: 2- The fixed and variable costs for three potential manufacturing plant sites are shown below: ---------------------------------------------------------------------------------------------- SITE FIXED COST PER YEAR VARIABLE COST PER UNIT
2- The fixed and variable costs for three potential manufacturing plant sites are shown below:
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SITE FIXED COST PER YEAR VARIABLE COST PER UNIT
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1 $500 $11
2 $1000 $7
3 $1700 $4
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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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