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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
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 $b make major modifications at a cost of $ or c purchase new equipment at a net cost of $ If the firm chooses to refurbish the equipment, materials and labor will be $ per board. If it chooses to make modifications, materials and labor will be $ per board. If it buys new equipment, variable costs are estimated to be$ per board. Graph the three total cost lines on the same chart.
b Which alternative should Ski Boards, Inc., choose if it thinks it
can sell more than boards?
c Which alternative should the firm use if it thinks the market
for boards will be between and
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