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
$700
$12.00
2
$1,200
$6.00
3
$2,200
$5.00
Part 2
a) After rounding to the nearest whole number, site 1 is best below
0
83
1000
units.
Part 3
After rounding to the nearest whole number, site 2 is best between
1000
0
83
and
83
0
1000
units.
Part 4
After rounding to the nearest whole number, site 3 is best above
1000
0
83
units.
Part 5
b) If the demand is 990units, then the best location for the potential manufacturing plant is
SITE 1
SITE 2
SITE 3
.

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