Question

The fixed and variable cost for three potential manufacturing plant sites for a wooden chair are...

The fixed and variable cost for three potential manufacturing plant sites for a wooden chair are shown

SITE FIXED COST PER YEAR VARIABLE COST PER UNIT
1 $500 $11
2 1,000 7
3 1,700 4

a.) over what range of production is each location optimal?

b.) For a production of 200 units, Which site is best?

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