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		$12.00
2	$1,100		$5.00
3	$2,200		$3.00

Part 2

a) After rounding to the nearest whole number, site 1 is best below

71

0

550

units.

Part 3

After rounding to the nearest whole number, site 2 is best between

71

0

550

and

0

550

71

units.

Part 4

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

0

71

550

units.

Part 5

b) If the demand is

61

units, then the best location for the potential manufacturing plant is

SITE 3

SITE 1

SITE 2

.