-80 Saved Help Save & Exit Check Problem 8-4 (Algo) A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives. A new location. (subcontract), and expand existing facilities Alternative A would involve substantial fixed costs but relatively low variable costs: foed costs would be $295,000 per year, and variable costs would be $530 per boat Subcontracting would involve a cost per boat of $2.540, and expansion would require an annual fixed cost of $51000 and a variable cost of $1120 per boat o. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "o wherever required. Round your answers to the nearest whole number) 0 more to th Prev 1 of 1 Next search o 3 ER work 7.8 Save Help Save b. Which alternative would yield the lowest total cost for an expected annual volume of 340 boats? OB C What other factors might be considered in choosing between expansion and subcontracting? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) CE subcontracting costs will be known with greater certainty 2 subcontracting provides a secondary backup source of supply expansion offers more control over operations pension costs will be known with greater certainty subcontracting offers more control over operations Prev 1 of 1 Nerd re to search