Over what range of production is each location optimal

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Reference no: EM131354750

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?

Reference no: EM131354750

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