Oswego Machine Company (OMC) produces 9,000 multipurpose pliers that sell for $9.50 each.Its present cost function is estimated to be:

TC = 25,000 + 3.7Q

However, OMC is considering renovating its facilities.The new, technologically advanced plant would have an estimated cost function of:

TC = 34,000 + 2.5Q

The marketing department claims that the demand for the pliers fits a normal distribution with an expected mean value of 14,000 units per year.

What are the current TC, TFC, TVC, ATC, and MC?

What is the break-even point for both plant designs?

Would you be in favor of renovating the plant?