Fall-Line, Inc., is a Great Falls, Montana, manufacturer of a variety of downhill skis. Fall-Line is considering four locations for a new plant: Aspen, Colorado; Medicine Lodge, Kansas; Broken Bow, Nebraska; and Wounded Knee, South Dakota. Annual fixed costs and variable costs per pair of skis are shown in the following table:

Location	Annual Fixed Costs	Variable Cost per Pair
Aspen	$8,000,000	$250
Medicine Lodge	$2,400,000	$130
Broken Bow	$3,400,000	$90
Wounded Knee	$4,500,000	$65

1. Plot the total cost curves for all the communities on a single graph. Identify on the graph the range in volume over which each location would be best.
2. What break-even quantity defines each range? Although Aspen's fixed and variable costs are dominated by those of the other communities, Fall-Line believes that both the demand and the price would be higher for skis made in Aspen than for skis made in the other locations. The following table shows those projections:

Location	Price per Pair	Forecast Demand per Year
Aspen	$500	60,000 pairs
Medicine Lodge	$350	45,000 pairs
Broken Bow	$350	43,000 pairs
Wounded Knee	$350	40,000 pairs

c. Determine which location yields the highest total profit per year.

d.Is this location decision sensitive to forecast accuracy? At what minimum sales volume does Aspen become the location of choice?