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A company that produces pleasure boats has decided to expand one of its ines. Current facilities are insufficlent to handle the increased workioad, so the

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A company that produces pleasure boats has decided to expand one of its ines. Current facilities are insufficlent to handle the increased workioad, so the company is considering three alternatives, A (new location). B (subcontract), and C (expand existing faciltles) Alternative A would involve substantiai fixed costs but relatively low variable costs: fixed costs would be $280.000 per year, and vartable costs would be $550 per boat Subcontracting would involve a cost per boat of $2,570, and expansion would require an annual fixed cost of $62,000 and a varlable cost of $1,090 per boat. 0. Find the range of output,for each altemative that would yleld the lowest total cost (Leave no cells blank - be certain to enter "O" wherever required. Roundyour answers to the nearest whole number.) b. Which aternative would yreid the lowest total cost fot an expected annual volume of 230 boats? C What objes Sictars might be considered in choosing between expansion and subcontracting? (You may select more than one shswee single chck the bok with the question mark to produce a check mark for a correct answer and double cllek the box with the quection mark to ampty the bok for a wrong answer. Any boxes lef with a question mark will be automatically groded as incorrect 2

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