Question: 1. If you were Skip Grenoble, which alternative would you advice Jim Beierlein to implement? What criteria would you use to arrive at your decision?

1. If you were Skip Grenoble, which alternative would you advice Jim Beierlein to implement? What criteria would you use to arrive at your decision?
2. At what level of demand (in pounds) per year would these two alternatives be equal?
3. Graphically represent these two alternatives and their tradeoff point.
4. Which alternative would you recommend be in place to accommodate future demand growth? What additional factors should be considered?

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