Show the total cost curve for each option

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Reference no: EM131722986

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,

(b) make major modifications at the cost of $1,000, or

If the firm chooses to refurbish the equipment, materials and labor will be $ 1.20 per board. If it chooses to make modifications, materials and labor will be $0.80 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board.

a) On a line graph, show the total cost curve for each option. Label the curves TCa, TCb, and TCc, respectively.

Note: Carefully follow the instructions above and only draw the required objects.

Reference no: EM131722986

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