Question: 5. The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site 1 2 3 Fixed Cost

5. The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site 1 2 3 Fixed Cost Per Year $700 $1,000 $2,100 Variable Cost per Unit $10.00 $6.00 $5.00 a) After rounding to the nearest whole number, site 1 is best below (1) units. After rounding to the nearest whole number, site 2 is best between (2) and (3) units. After rounding to the nearest whole number, site 3 is best above (4) units. b) If the demand is 1110 units, then the best location for the potential manufacturing plant is (5) (1) O 75 0 1100 (2) O 75 1100 (3) O 75 O 1100 0 (4) O 75 O 1100 (5) O SITE 1 SITE 2 SITE 3

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