Hackers Golf Club Inc. (not a real company) is contemplating a new finish for the golf clubs it manufactures. Bernd Hacker, the company CEO, has come up with three choices:

(a) Refurbish the old machine at a cost of $1200,

(b) Purchase a new machine at a cost of $2500, or

(c) Make major design modifications to the old machine at a cost of $1600. If the refurbishing alternative is chosen, variable costs would amount to $2.50 per club. Variable costs for the alternative of major design modifications would be $1.20, and for the new machine it would be $ 0.80 (all in U.S. dollars):

1. Construct a total cost graph for the three alternatives.

2. What alternative would Bernd Hacker choose if the sales volume for the golf clubs is expected to be 5,000 units?

3. What would be the best alternative of the sales volume for the golf clubs if they will be between 2,000 and 3,000?