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

$600

$10.00

2

$1,000

$7.00

3

$2,100

$5.00

After rounding to the nearest whole number, site 1 is best below 133 units.

After rounding to the nearest whole number, site 2 is best between 133 and 550 units.

After rounding to the nearest whole number, site 3 is best above 550 units.

If the demand is 540 units, then the best location for the potential manufacturing plant is ____

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