Fixed and variable costs for three potential manufacturing

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The fixed and variable costs for three potential manufacturing plant sites are shown below:

Site A has a fixed cost of $500 per year and a variable cost of $11 per unit

Site B has a fixed cost of $1,000 per year and a variable cost of $7 per unit

Site C has a fixed cost of $1,700 per year and a variable cost of $4 per unit

Over what range of production is each site optimal?

a. Site A up to 150, site B from 150-240 and Site C above 240

b. Site A up to 175, Site B from 175-250 and Site C above 250

c. Site A up to 125, Site B from 125 to 260 and Site C above 260

d. Site A up to 125, Site B from 120 to 233 and Site C above 233

Reference no: EM131686149

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