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
.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started