Solution: The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: Site Fixed Cost per Year Variable
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 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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![[All Steps] The Temple Toy Company has](/images/solutions/MC-solution-library-56880.jpg "[All Steps] The Temple Toy Company has decided to manufacture a")
![[All Steps] Dell uses the CR5 chip](/images/solutions/MC-solution-library-56881.jpg "[All Steps] Dell uses the CR5 chip in some of its laptop computers.")
![[See Steps] Bus and subway ridership for](/images/solutions/MC-solution-library-56884.jpg "[See Steps] Bus and subway ridership for the summer months in")
