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Andersons's Boats will be producing a new line of speed boats and has the choice of a larger production facility with a less laborers or

Andersons's Boats will be producing a new line of speed boats and has the choice of a larger production facility with a less laborers or a smaller production facility with more laborers. Each boat will be sold for $80,000. If the large production facility is chosen, the cost to produce each boat will be $50,000, while the cost per boat will be $64,000 at the smaller production facility. The large production facility would have fixed costs of $10 million and a depreciation expense of $1,600,000, while those expenses would be $4 million and $600,000 for the smaller production facility. Above what level of expected sales should Anderson's Boats choose the larger production facility alternative to maximize pretax operating cash flow? (Round final answer to the nearest whole number.)
a.1,000 boats
b.215 boats
c.500 boats
d.429 boats

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