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

$11.00

2

$1,000

$6.00

3

$2,100

$3.00

Part 2a) After rounding to the nearest whole number, site 1 is best below

0?

40?

367?

units.

Part 3After rounding to the nearest whole number, site 2 is best between

0?

40?

367?

and

0?

40?

367?

units.

Part 4After rounding to the nearest whole number, site 3 is best above

0?

367?

40?

units.

Part 5b) If the demand is

357

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

.Site 1?

Site 2?

Site 3?

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