Please show work no excel 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(c) purchase new equipment at a net cost of $1,750.If the firm chooses to refurbish the equipment, materials and labor will be $1.10 per board. If it chooses tomake modifications, materials and labor will be $0.75 per board. If it buys new equipment, variable costs areestimated to be $0.40 per board.a) On the graph to the right, use the line drawing tool to draw the total cost curve for each option. Label thecurves TC₂, TC, and TCC, respectively.Note: Carefully follow the instructions above and only draw the required objects.Dollars8,000-7,50047,000-6,5006,000-5,500-5,000-4,500-4,000-3,500-3,000-2,500-2,000-1,500-1,000-500-0-to01,000 2,0003,000Boardso4,000 5,000

A total cost curve is a graph that represents the total costs of production as a function of the…

Answered: a) On the graph to the right, use the…

a) On the graph to the right, use the line drawing tool to draw the total cost curve for each option Label the curves TC₂. TC, and TCc, respectively

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 7E

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