Question: sol 8.30 The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown here: SITE FIXED COST PER YEAR

sol sol 8.30 The fixed and variable costs for four

8.30 The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown here: SITE FIXED COST PER YEAR VARIABLE COST PER UNIT Atlanta $125,000 $6 Burlington 75,000 5 Cleveland 100,000 4 Denver 50,000 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? PX

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