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 | $2,000 | $3.00 | ||
Part 2
a) After rounding to the nearest whole number, site 1 is best below units.
b) After rounding to the nearest whole number, site 2 is best between and units.
c) After rounding to the nearest whole number, site 3 is best above units.
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