b. To address the demand, the plant operations team is looking at two short term options to increase plant capacity for the next year. They present you with the following (6 marks): i. Alternative 1: The company's design engineer has a proposal from Allkinds, Milling, a local milling operation, with additional capacity to mill and package 400,000 kilograms of fire-retardant powder per year. The company would charge $1.20 per kilogram to do the milling and packaging. After the powder was mixed at Zonal's plant it would be transferred by a trucking company to Allkinds' plant for $6,500 per month. Calculate the net benefit/loss of this option. ii. Alternative 2: The operations manager has found a way to increase the capacity in the Blending Department by renting additional blending vats from Vats Unlimited. The annual cost of renting these vats would be $125,000. The operations manager is particularly interested in this arrangement over Option 1 as it could increase the department's capacity by 500,000 kilograms without increasing the variable cost. Calculate the net benefit/loss of this option. MacBook Air