Hover board Inc. is preparing to build a new plant to meet the increasing demand for its hover boards, and is considering three potential locations for it. The Fixed and Variable costs for the three alternative locations are presented below.
A) Write a linear function that represents the costs associated with each location and plot them to scale.
B) Using algebra, indicate over what range each of the alternatives A,B,C is the low-cost choice.
C) Is any alternative never preferred? Explain
Costs A B C
Fixed $ 2,500,000 2,000,000 3,500,000
Variable ($ per Unit) 21 25 15