$1,800. If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board. If it chooses to make modifica- tions, materials and labor will be $0.70 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board. a) 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 3,000 boards? c) Which alternative should the firm use if it thinks the market for boards will be between 1,000 and 2,000? Px (monager of Urban's Motor Court
$1,800. If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board. If it chooses to make modifica- tions, materials and labor will be $0.70 per board. If it buys new equipment, variable costs are estimated to be $0.40 per board. a) 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 3,000 boards? c) Which alternative should the firm use if it thinks the market for boards will be between 1,000 and 2,000? Px (monager of Urban's Motor Court
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
Related questions
Question
Please help answer 7.6 a b & c. Thank you
Transcribed Image Text:Eric Limon/ Shutterstock
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Transcribed Image Text:CHAPTER 7
PROCESS STRATEGIES 301
ed with POM for Windows and/or Excel OM.
$1,800. If the firm chooses to refurbish the equipment, materials
and labor will be $1.10 per board. If it chooses to make modifica-
act
tions, materials and labor will be $0.70 per board. If it buys new
equipment, variable costs are estimated to be $0.40 per board.
a) Graph the three total cost lines on the same chart.
pa
b) Which alternative should Ski Boards, Inc., choose if it thinks it
is
can sell more than 3,000 boards?
c) Which alternative should the firm use if it thinks the market
for boards will be between 1,000 and 2,000? Px
Unbon owner/manager of Urban's Motor Court
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