Question: Problem #1, Part A The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown below. They antic

Problem #1, Part A The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown below.

Problem #1, Part A The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown below. They antic ipate that they will make 25,000 units per year Site Fixed Cost Per Year Variable Cost Per Unit Initial Situation # units 25,000 500 1,000 $ 1,700 $ 7 4 Selling Price $29 a) What is the lowest cost location for the specified volume? b) What is the gross profit (income - variable costs) to be anticipated at that location, at that volume? Use this area to Solve the Problem in Excel (using formulas): Site Fixed Cost Per Year Variable Cost Per Unit Total Annual Cost at Specified Units Initial Situation 500 $ 1,000 $ 1,700 $ # units 25,000 7 4 Selling Price $29 Answers: a) What is the lowest cost location for the specified volume? b) What is the gross profit (income - variable costs) to be anticipated at that location

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