Assignment:
Ski Boards, Inc. wants to enter the market quickly with a new finish on its ski boards. It has three choices:
a. refurbish the old equipment at a cost of $500,
b. make major modifications at the cost of $1,000, or
c. purchase new equipment at a net cost of $1, 750.
If the firm chooses to refurbish the equipment, materials and labor will be $1.20 per board. If it chooses to make modifications, materials and labor will be $0.80 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board.
On the graph to the right, use the line drawing tool to draw the total cost curve for each option. Label the curves TC_a, TC_b, and TC_c, respectively.
Note: Carefully follow the instructions above and only draw the required objects.