Question: 1. (20) The fixed and variable costs for four potential plant sites for a ski equipment manufacturer are shown below: Site Fixed cost per Variable

1. (20) The fixed and variable costs for four potential plant sites for a ski equipment manufacturer are shown below: Site Fixed cost per Variable cost year (S) per unit (S) Atlanta 125000 6 Burlington 75000 5 Cleveland 100000 4 Denver 50000 12 a Graph the total-cost lines for the four potential sites. b. Over what range of annual volume is each location the preferable one (that with lowest expected cost)? c. If expected volume of the ski equipment is 5,000 units, which location would you recommend

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