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 $800 $10.00
2 $1,100 $7.00
3 $2,100 $3.00
The manufacturing plant is not expected to produce more than 400 units, monthly. Use the date provided and chart the total cost using the Break-Even Analysis to answer the following questions.
(2 points each question)
a) At what maximum monthly volume would you recommend site 1? Why? (2 points)
b) Which site would you recommend for a monthly output of 200 units? Why? (2 points)
c) Which site would you recommend for a monthly output of 350 units? Why? (2 points)
d) Practically speaking, if you are asked to choose the best site for a demand of 190units, which site would you choose between 1 & 3(if site 2 is not an option)? Justify your answer based on a practical assumptions outside of the data provided to you. (2 points)

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