The fixed and variable costs for three potential manufacturing plant sites are shown below:
Site A has a fixed cost of $500 per year and a variable cost of $11 per unit
Site B has a fixed cost of $1,000 per year and a variable cost of $7 per unit
Site C has a fixed cost of $1,700 per year and a variable cost of $4 per unit
Over what range of production is each site optimal?
a. Site A up to 150, site B from 150-240 and Site C above 240
b. Site A up to 175, Site B from 175-250 and Site C above 250
c. Site A up to 125, Site B from 125 to 260 and Site C above 260
d. Site A up to 125, Site B from 120 to 233 and Site C above 233