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), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $255,000 per year, and variable costs would be $570 per boat. Subcontracting would involve a cost per boat of $2,560, and expansion would require an annual fixed cost of $56,000 and a variable cost of $1,080 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leove no cells blenk - be certeln to enter "O" wherever requlred. Round your answers to the nearest whole number.) b. Which alternative would yield the lowest total cost for an expected annual volume of 130 boats? A B C C. What other factors might be considered in choosing between expansion and subcontracting? (You may select more then one answer. Single cllek the box wlth the question mark to produce a check mark for a correct answer and double ellek the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon mark will be outomatically groded as Incorrect.) ? subcontracting costs will be known with greater certalnty ? subcontractina provides a secondarv (backuol source of suoolv E. What other factors might be considered in choosing between expansion and subcontracting? (You moy select more then one answer. Single ellek the box wlth the questlon mark to produce a check mark for a correct answer and double ellek the box wlth he question mark to empty the box for a wrong answer. Any boxes left with a questlon mark will be automatleally graded as icorrect.) ? subcontracting costs will be known with greater certalnty ? subcontracting provides a secondary (backup) source of supply ? expansion offers more control over operations ? expansion costs will be known with greater certainty ? subcontracting offers more control over operations