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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	$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?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92099206

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