Question: Locational Cost-Volume Analysis: The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are sh own: Total cost =

Locational Cost-Volume Analysis: The fixed and

Locational Cost-Volume Analysis: The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are sh own: Total cost = Fixed cost + variable cost Variable cost per unit Site Fixed cost per year 1 $600 $10 2 $1200 $7 $2100 $3 If the demand is 221 units, the best location for the potential manufacturing plant is? A. Site 1 B. Site 2 C. Either site 1 or site 2 D. Site 3 E. Either site 2 or site 3

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