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 $270,000 per year, and variable costs would be $600 per boat. Subcontracting would involve a cost per boat of $2,600, and expansion would require an annual fixed cost of $51,000 and a variable cost of $1,030 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter " C wherever required. Round your answers to the nearest whole number.) b. Which alternative would yield the lowest total cost for an expected annual volume of 210 boats? A B C 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.) ? subcontracting costs will be known with greater certainty ? 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