The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: a) After rounding to the nearest whole number, site 1 is best below After rounding to the nearest whole number, site 2 is best between After rounding to the nearest whole number, site 3 is best above Site 1 2 3 units. and units. Fixed Cost Per Year $800 $1,000 $2,000 units. b) If the demand is 240 units, then the best location for the potential manufacturing plant is Variable Cost per Unit $10.00 $7.00 $3.00

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Answer choices:

A: 67, 0, 250

67, 0, 250

67, 0, 250

B: SIte 1, Site 2, Site 3

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The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:
a) After rounding to the nearest whole number, site 1 is best below
After rounding to the nearest whole number, site 2 is best between
After rounding to the nearest whole number, site 3 is best above
Site
1
2
3
units.
and
units.
Fixed Cost Per Year
$800
$1,000
$2,000
units.
b) If the demand is 240 units, then the best location for the potential manufacturing plant is
Variable Cost per Unit
$10.00
$7.00
$3.00
Transcribed Image Text:The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: a) After rounding to the nearest whole number, site 1 is best below After rounding to the nearest whole number, site 2 is best between After rounding to the nearest whole number, site 3 is best above Site 1 2 3 units. and units. Fixed Cost Per Year $800 $1,000 $2,000 units. b) If the demand is 240 units, then the best location for the potential manufacturing plant is Variable Cost per Unit $10.00 $7.00 $3.00
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