Dragon Games Inc wants to introduce a new game machine with a new finish to attract the young players. It is considering three alternative processes, given below:
1. Set up to refinish the old boxes at a cost of $800. This will result in material and labor cost of $1.10 per box.
2. The company might decide to set up for making major changes at a cost of $1100. This will result in material and labor cost per box of $0.70.
3. Some propose to purchase a new upgrading equipment at a cost of $1800. This will require a cost of $0.40 per box.
a) Draw a graph depicting this dilemma the company is facing. Indicate the points of indifference among these options. You must use proper scale.
b) Calculate these points of indifference (or crossover). Show the equations representing the decision.