Question

help with the drawing please !!!!

B QUCSLUIT Help Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices 8,000 7,500 7,000 6,500 6,000 (a) refurbish the old equipment at a cost of $250 (b) make major modifications at the cost of $1,000, or (c) purchase new equipment at a net cost of $1,750. 5,500- If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board. If it chooses to make modifications, materials and labor will be $0.85 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board Dolars 5,000- 4,500 4000- O 3.500 3,000- 2,500 2,000 1,500 1,000 500- a) On the graph to the right, use the line drawing tool to draw the total cost curve for each option. Label the curves TCa TCb, and TCc, respectively Note: Carefully follow the instructions above and only draw the required objects 1.000 2.000 3.000 Boards 4.000 5.000

Answer 1

Number of boards = x

(a) Fixed Cost = $250
Variable cost = 1.10x
Total Cost = TCa = 250 + 1.10x

(b) Fixed Cost = $1000
Variable cost = 0.85x
Total Cost = TC_b = 1000 + 0.85x

(c) Fixed Cost = $1750
Variable cost = 0.40x
Total Cost = TC_c = 1750 + 0.40x

Let us now calculate the cost for values of ranging from 0 to 5000 in intervals of 500

#Boards (x)	TCa	TCb	TCc
0	250	1000	1750
500	800	1425	1950
1000	1350	1850	2150
1500	1900	2275	2350
2000	2450	2700	2550
2500	3000	3125	2750
3000	3550	3550	2950
3500	4100	3975	3150
4000	4650	4400	3350
4500	5200	4825	3550
5000	5750	5250	3750

Plotting the above -

Total Cost отса отсь отас 6000 4000 Dollars 2000 1000 2000 3000 4000 5000 Boards