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A company that produces pieasure boats has decided to expand one of its lines. Current faclities are insufficient to handie the increased workload, so the

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A company that produces pieasure boats has decided to expand one of its lines. Current faclities are insufficient to handie the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing focilties). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $285,000 per year, and variable costs would be $580 per boot. Subcontrocting would involve a cost per boat of $2,550, and expansion would require an annual fixed cost of $58,000 and a variable cost of $1,090 per boat. a. Find the renge of output for each altemative that would yleld the lowest total cost. (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to the nearest whole number.) (0) Answer is complete but not entirely correct. b. Which alternotive would yleld the lowest total cost for an expectod annual volume of 270 boats? A B C 0

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