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 |
1000 |
7 |
| 3 |
1700 |
4 |
a) Over what range of production is each location optimal?
b) For a production of 200 units, which site is best?