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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