SITE FIXED COST PER YEAR VARIABLE COST PER UNIT 1 $ 500 $11 1,000 7 1,700 4 N3

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown:                                                                                                                                                           a) Over what range of production is each location optimal?
b) For a production of 200 units, which site is best?
SITE
FIXED COST PER YEAR
VARIABLE COST PER UNIT
1
$ 500
$11
1,000
7
1,700
4
N3
Transcribed Image Text:SITE FIXED COST PER YEAR VARIABLE COST PER UNIT 1 $ 500 $11 1,000 7 1,700 4 N3
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9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing