Determine the production volume

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Question: Three alternative designs have been created by Snakisco engineers for a new machine that spreads cheese between the crackers in a Snakisco snack. The costs for the three designs (where x is the annual production rate of boxes of cheese crackers) follow:

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(a) Managementis interested in the production interval of 0-150,000 boxes of crackers per year. Mathematically determine the production volume over which each design (A or B or C) would be chosen.

(b) Depict your solution from part (a) graphically, clearly labeling your axes and including a title for the graph, so that management can easily see the following:

i. Accurate total cost lines for each alternative (show line, slopes, and line equations).

ii. Any relevant breakeven, or crossover points.

iii. Ranges of annual production where each alternative is preferred.

Reference no: EM132155679

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