J 4

Need well defined and structured answer to all parts with detailed explanation to all steps

Problem 2 A manufacturer of staplers is about to lose its lease, so it must move to another location. Two sites are currently under consideration. Fixed cost would be $8000 per month at Site A & $9400 per month at Site B. Variable cost are expected to be $5 per unit at Site A & $4 per unit at site B. Monthly demand has been steady at 8800 units for the last several years and is not expected to deviate from that amount in the foreseeable future. Assume stapler sell for $6 per unit. Determine which location would yield the higher profit under these conditions