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:

Still Working

Engaged in performing tasks or duties, typically in a professional context, without having ceased or completed the activity.

Probability

The calculation of how probable it is for an event to happen.

Batteries

Devices consisting of one or more electrochemical cells that store and supply electric energy.

Fair Die

A die that is perfectly balanced, ensuring that each of its faces has an equal chance of landing upward when rolled.