Location	Annual Fixed Costs	Variable Costs per Shipment
Santa Fe	$4,800,000	$4.65
Salt Lake City	$4,500,000	$6.35
Denver	$3,200,000	$7.50

a. Plot the total cost curves for all of the locations on a single graph. To ensure that you are able to clearly see the intersection of the lines, start your cost curves at 0 shipments (the y-intercept) and end your lines at a volume of 800 thousand shipments.

1.) Using the line drawing tool, plot the cost curve for

Santa Fe

and label it properly.

2.) Using the line drawing tool, plot the cost curve for

Salt Lake City

and label it properly.

3.) Using the line drawing tool, plot the cost curve for

Denver

and label it properly.

Carefully follow the instructions above, and only draw the required objects.

b. Which city provides the lowest overall costs?

For up to ____ shipments per year, the best city is ___(Santa Fe, Salt Lake City, Denver)

.

Beyond that, the best city is _____(Salt Lake City, Santa Fe, Denver)_____

. (Enter your response rounded to the nearest whole number.)