Question: A manager hesitates between two locations. Site A would have fixed costs of $50,000 and variable costs of $20/unit. Site B would have fixed costs of $10,000 and variable costs of $10/unit. For what range of quantities is each option the most advantageous? The manager did an additional study on sites A and B in example 1. He determined that the selling price at site A would be $50/unit while it would be $48/unit at site B. The forecast is 4,000 units. Which site should be recommended based on... profits ? The profit margin?