A Major Computer Manufacturer Is Interested in Establishing a Customer

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?