Question

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 $800, (b) make major modifications at a cost of $1,100, or (c) purchase new equipment at a net cost of $1,800.If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board. If it chooses to make modifications, 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) Graphically represent the three alternatives and their tradeoff points.B) What are the most cost effective volume ranges for each option

Answer 1

It would be 2,796 because the rate says otherwise