Question: Question 1 The fixed and variable costs for three potential manufacturing plant sites for a fruit processing in Chilliwack, BC are shown below in Table

Question 1

The fixed and variable costs for three potential manufacturing plant sites for a fruit processing in Chilliwack, BC are shown below in Table 1:

Table 1: Fixed and Variable Cost Data

Location

Fixed Cost

Variable Cost

A

$500

$11

B

$1000

$7

C

$1700

$4

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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