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

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

Site Fixed Cost Per Year Variable Cost Per Unit
1 $500 $11
2 $1,000 $7
3 $1,700 $4

a) Over what range of production is each location optimal?

Site 1 is optimal for production between ______ and ______ units.

Site 2 is optimal for production between [b] and ______ units.

b) What site is optimal for 300 units? For 300 units, site ______ is optimal.

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