Solve Problem 7.10 using cross over method

Solve problem 7.11 using cross over method

' i 110 Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) refurbish the old equipment at a cost of $800,. (b) make major modications at the cost of $1100, or (c) purchase new equipment at a net cost of $1800. If the firm chooses to refurbish the equipment, materials and labour will be $1.10 per board. If it chooses to make modifications, materials and labour will be $030 per board. If it buys new equipment. variable costs are estimated to be $0.40 per board. a. Graph the three total cost lines on the same chart. b. Which alternative should Ski Boards, Inc., choose if it thinks it can sell more than 3000 boards? c. Which alternative should the firm use if it thinks the market for boards will be between 1000 and 2000? . . 7.11 Susan Meyer, owner/manager of Meyer's Motor Court in Wasaga Beach, Ontario, is considering outsourcing the daily room cleanup for her motel to Duffy's Maid Service. Susan rents an average of 50 rooms for each of 365 nights (365 x 50 equals the total rooms rented for the year). Susan's cost to clean a room is $12.50. The Duffy's Maid Service quote is $18.50 per room plus a fixed cost of $25 000 for sundry items such as uniforms with the motel's name. Susan's annual fixed cost for space, equipment, and supplies is $61 000. Which is the preferred process for Susan, and why? PX