Boat manufacturing company has three options to expand its capacity: 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 $210,000 per year, and variable costs would be $250 per boat. Subcontracting would involve a cost per boat of $1,400, and expansion would require an annual fixed cost of $82,000 and a variable cost of $700 per boat. The selling price is $1,800 per unit. 1. Determine the BEP in quantity for alternative A. 2. Find the range of output for each altemative that would yield the highest profit. 3. Which alternative would yield the lowest total cost for an expected annual volume of 300 units