Question: 3. The fixed and variable costs for 3 potential plant sites for a ski equipment manufacturer are shown below Site Fixed Cost Per year Variable

 3. The fixed and variable costs for 3 potential plant sites

3. The fixed and variable costs for 3 potential plant sites for a ski equipment manufacturer are shown below Site Fixed Cost Per year Variable Cost Per Unit Atlanta Burlington Cleveland $250 $500 $1000 $6 $5 $4 (a) Graph the total cost lines for the three potential sites. (use x-0 and x-300 to draw the graph) (2 points) (b) Over what range of annual volume is each location the preferable one? (3 points) (o) If expected volume is 400 units, which location would you recommend? (2 points)

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