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 $ 250,
(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.
a) On a line graph, show the total cost curve for each option. Label the curves TCa, TCb, and TCc, respectively.
Note: Carefully follow the instructions above and only draw the required objects.