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

$10.00

2

$1,000

$5.00

3

$2,200

$3.00

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

60

0

600

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

60

0

600

and

60

600

0

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

60

0

600

units.Part 5b) If the demand is

610

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

SITE 1

SITE 2

SITE 3

.

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