Zodiac Furniture is considering the production of a new line of metal office chairs. The chairs can

be produced in$-$house using either process A or process B$.$ The chairs can also be purchased from

an outside supplier. The cost scenarios for each production alternative are given in the following

table.

Process Alternative Fixed Cost Variable Cost per

Unit

Process A $$30,000$ $$38$

Process B $$40,000$ $$25$

Outside Supplier $$0$ $$50$

a$.$ Graphically plot the total costs for all three alternatives. Identify which range of product

volume are best for each alternative.

b$.$ If the company produces only $600$ chairs per year, which alternative is best?

c$.$ If the company produces $3000$ chairs per year, which alternative is best?