Coconut growers will use coconuts for two products. The fresh coconuts will be used for sale and the coir from the dried ones will be used to make floor mats, doormats, brushes and mattresses. The cost of this conversion would be the same whether done at the coconut groves, where the fruits are dried, or at the factory. However, choir occupies less than half the volume of the coconuts from which they are made.
The information given, if accurate, most strongly supports which of the following?1
Converting the coconuts into coir at the logging site would require transporting a fully assembled drying machine to and from the site
2
It would be more economical to dry the conconut at the factory where the floor mats, doormats, brushes and mattresses are manufactured
3
The drying of coconuts and the conversion of the coconuts into coir are the only stages in the processing of coconuts that would be in the economic advantage to perform at the groves
4
Transportation costs from the groves to the factory that are determined by volume of the cargo would be lower if the conversion into coir is done at the groves rather than at the factory