Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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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
$800
$12.00
2
$1,200
$5.00
3
$2,000
$3.00
a) After rounding to the nearest whole number, site 1 is best below
units.
After rounding to the nearest whole number, site 2 is best between
and
units.
After rounding to the nearest whole number, site 3 is best above
units.
b) If the demand is 47 units, then the best location for the potential manufacturing plant is
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Transcribed Image Text: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 $800 $12.00 2 $1,200 $5.00 3 $2,000 $3.00 a) After rounding to the nearest whole number, site 1 is best below units. After rounding to the nearest whole number, site 2 is best between and units. After rounding to the nearest whole number, site 3 is best above units. b) If the demand is 47 units, then the best location for the potential manufacturing plant is
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