Use Scenario 12.2 to answer the question. Determine the ranges for which each alternative is preferable from a total cost standpoint
What will be an ideal response?
The Oklahoma alternative is superior for small volumes of students due to the comparatively low fixed cost. It is surpassed by Wisconsin as dictated by the intersection point of the equations:
15,000 + 17x = 22,000 + 13x
4x = 5,000
x = 1,750
Similarly, Wisconsin is preferred to England only to the point that England's low variable cost wins the day. Thus:
35,000 + 10x = 22,000 + 13x
13,000 = 3x
x = 4,333.33
Oklahoma 0 - 1,750 students
Wisconsin 1,751 - 4,333 students
England 4,334 - infinite students
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What will be an ideal response?
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