Question: The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Site Atlanta Burlington Cleveland Denver Fixed Cost

The fixed and variable costs for four potential

The fixed and variable costs for four potential plant sites for Brent Snyder's Ski Supplies are shown below: Site Atlanta Burlington Cleveland Denver Fixed Cost Per Year $115,000 65,000 90,000 40,000 Variable Cost Per Unit $5 4 3 13 a) Graph the total-cost lines for the four potential sites IO A. O B. 300 250 200 Cleveland Atlanta Denver Canta Cost (1,000s of $) 300 250 200 150 10051 501 150 Cost (1,000s of $) Cleveland Burlington 5100 Burlington Denver 50 ot 0 10 20 30 40 Volume (1.000s of units) 0 10 20 30 40 Volume (1,000s of units) C. OD Q Atlanta Denver Cost (1,000s of $) 300 250 2005 150 Cleveland 100 50 Burlington om 0 10 20 30 40 Volume (1.000s of units) Cost (1,000s of $) 300 250 Denver 2003 Burlingto 150 100) Cleveland 50 Atlanta of 3040 0 10 20 30 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 Burlington is Cleveland is V Denver is c) If expected volume of the ski equipment is 4,900 units, is the best site. ) Over what range of annual volume is each location the preferable one that with lowest expected cost)? b) Over what range of annual volume is each location the preferable one that with lowest expected cost)? Atlanta is Atlanta is Burlington Burlington is Denver preferable when the volume exceeds o, but is less than 4,900 units preferable when the volume exceeds 2,778, but is less than 25,000 units Burlington Cleveland Cleveland is Atlanta never preferable Denver is Denver is Cleveland preferable when the volume exceeds 25,000 units preferable when the volume exceeds o, but is less than 2,778 units c) If expec c) If expected volume of the ski equipment is 4,900 units, s is the best site

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