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Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) refurbish the old
Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) refurbish the old equipment at a cost of $250, 8,000- (b) make major modifications at the cost of $1,000, or 7,500- (c) purchase new equipment at a net cost of $1,750. 7,000- 6,500- If the firm chooses to refurbish the equipment, materials and labour will be $1.25 per board. If it chooses to 6,000- make modifications, materials and labour will be $0.80 per board. If it buys new equipment, variable costs 5,500- are estimated to be $0.40 per board. 5,000- 4,500- a) On the graph to the right, use the line drawing tool to draw the total cost curve for each option. Label the 4,000- curves TCa, TCb, and TCc, respectively. 3,500 3,000- Note: if you are not prompted for labels, you have used the wrong drawing tool. 2,500- 2,000- 1,500- 1,000- 500- 1,000 2,000 3,000 4,000 5,000 Boards
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