Question: The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Fixed Cost Per Variable Cost Per Site
The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Fixed Cost Per Variable Cost Per Site Year Unit Atlanta $125,000 $6 Burlington $75,000 $5 Cleveland $100,000 $4 Denver $50,000 $12 a) Choose the graph that correctly shows the total-cost lines for the four potential sites. . . Cost (1.000s of $) 3003 a 250 Alar 2003 150 1005 Burlington 505 om 0 10 20 30 40 Volume (1,000s of units) Cost (1,000s of S) 3002 a 250 200 Atlanta 150 Stand 100 Burlington 50 0 0 10 20 30 40 Volume (1,000s of units) c. OD 3002 250 Cost (1.000s of 5) Q 3002 250 Alarita Q 200 Burlington 150 100 50 0 0 10 20 30 40 Volume (1,000s of units) Cost (1.000s of 5) yond 200 All 150 100 Burlington 50 ot 0 10 20 30 40 Volume (1,000s of units) b) Over what range of annual volume is each location the preferable one (that with lowest expected cost)? Atlanta is (1) Burlington is (2) Cleveland is (3) Burlington Cost (1) 100 Burlington . 50 0 0 10 20 30 40 Volume (1,000s of units) 100 50 Cost (1.0 0+ 0 10 20 30 40 Volume (1.000s of units) Oc. OD. Cost (1.000s of $) 3003 a 250 200 Atlanta Q Burlington 150 Cleveland 100 50 o# 0 10 20 30 40 Volume (1,000s of units) Cost (1,000s of $) 3002 250 Cland 200 Alapta 150 1005 Burlington 505 ot 0 10 20 30 40 Volume (1.000s of units) b) Over what range of annual volume is each location the preferable one that with lowest expected cost)? Atlanta is (1) Burlington is (2) Cleveland is (3) Denver is (4) c) If expected volume of the ski equipment is 5,000 units (5) is the best site. (1) preferable when the volume exceeds 25,000 units preferable when the volume exceeds 0, but less than 5,000 units never preferable preferable when the volume exceeds 0, but is less than 3,570 units O preferable when the volume exceeds 3,570, but is less than 25,000 units Denver is (4) c) If expected volume of the ski equipment is 5,000 units (5) is the best site. (1) O preferable when the volume exceeds 25,000 units O preferable when the volume exceeds 0, but less than 5,000 units never preferable preferable when the volume exceeds 0, but is less than 3,570 units O preferable when the volume exceeds 3,570, but is less than 25,000 units preferable when the volume exceeds o, but is less than 3,570 units preferable when the volume exceeds 0, but less than 5,000 units never preferable O preferable when the volume exceeds 25,000 units O preferable when the volume exceeds 3,570, but is less than 25,000 units (3) preferable when the volume exceeds 3,570, but is less than 25,000 units Onever preferable preferable when the volume exceeds 25,000 units preferable when the volume exceeds 0, but less than 5,000 units preferable when the volume exceeds o, but is less than 3,570 units (4) never preferable preferable when the volume exceeds 0, but is less than 3,570 units preferable when the volume exceeds 25,000 units preferable when the volume exceeds 0, but less than 5,000 units O preferable when the volume exceeds 3,570, but is less than 25,000 units Burlington Atlanta Cleveland Denver