1. (worth 2 points) Napa Gush manufactures high-tech soda machines for use in restaurants and catering environments. Presently, Napa only sells within the US, but has clients who would buy its soda machines in foreign countries if Napa sold outside the US. Because the soda machines use such cutting-edge technology, Napa has a very large and costly product design department. The department has a lot of employees and uses a lot of expensive high-tech equipment. Whether Napa sells 1000 machines or 100,000 machines, the cost of the product design department remains the same. The cost per year of the product design department is $3,000,000. Presently, Napa sells 10,000 soda machines per year at an average manufacturing cost in the US of $800 per soda machine. Napa is considering globalizing its operations. If it globalizes, sales could grow to 50,000 soda machines per year. The average manufacturing cost in foreign countries will be $800 per soda machine. Based on the information above on Napa's activities, which statement is the most correct? Please explain your choice in 50 words. a. Napa should not globalize. No benefits will come to Napa from globalizing. b. The company presently manufactures soda machines in the US at a cost of $800 per water fountain. Globalizing will allow the company to manufacture soda machines at a lower cost. C. If Napa manufactures in a foreign market, the cost of its product design department will double, bringing the cost of product design to $6,000,000. d. Globalizing will allow Napa to spread the cost of the product design department across a greater number of domestic and foreign sales (economies of scale). The cost of the product design department per soda machine will decline from $300 to $60. e. Napa will have to develop new products to enter global markets to meet the demands of its existing client in foreign markets