A Major Computer Manufacturer Is Interested in Establishing a Customer

question 5

Essay

A major computer manufacturer is interested in establishing a customer service center to handle business for the next decade. They conduct exhaustive research on land and construction costs, utilities, tax breaks, and wages at three sites, Oklahoma City, Austin, and Nashville. Answer these questions using these costs as displayed in the table below.
$$\begin{array} { | l | c | c | c | } \hline \text { Costs } & \text { Austin } & \text { Nashville } & \text { Oklahoma City } \\\hline \text { Fixed } ( \$ ) & 200,000 & 150,000 & 300,000 \\\hline \text { Variable (\$/unit) } & 7 & 10 & 4 \\\hline\end{array}$$ Graph the total cost curves and indicate the range of output that is best for each prospective site. What are the assumptions you have made in this analysis?

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Definitions:

Inconvenience

A minor trouble or difficulty that causes discomfort or annoyance but is not a serious problem.

Audience Compliance

The extent to which an audience acts in accordance with the expectations or requests of a speaker or message.

Central Request

The primary or most important appeal or demand made within a communication.

Inconvenience

A cause of trouble or difficulty that interrupts regular processes or causes discomfort, often minor but sometimes significant.