Question: The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site Fixed Cost Per Year Variable Cost

The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:

Site

Fixed Cost Per Year

Variable Cost per Unit

1

$700

$12.00

2

$1,000

$7.00

3

$2,000

$3.00

1) After rounding to the nearest whole number, site 1 is best below ___- units

2) After rounding to the nearest whole number, site 2 is best between ____ and ____ units.

3) After rounding to the nearest whole number, site 3 is best above _____ units.

4)If the demand is 240 units, then the best location for the potential manufacturing plant is

Options for all questions 1-3 is 0, 60, 250

Option for question 4 is site 1, site 2 and site 3

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