Cost, Volume, Profit Analysis (20 min.) With the possibility of the US Congress relaxing timber cutting restrictions, a local lumber company is considering an expansion of its facilities. The company believes it can sell lumber for $0.18/board foot A board foot is a measure of lumber. The tax rate for the company is 30 percent. The company has the following two opportunities: . Build Factory A with annual fixed costs of $20 million and variable costs of $0.10/board foot. This factory has an annual capacity of 500 million board feet Build Factory B with annual fixed costs of $10 million and variable costs of $0.12/board foot. This factory has an annual capacity of 300 million board feet. Required: A and Factory B? (10 points) Facto 1. What is the break-even point in board. 2. If the company wants to generate an after-tax profit of $2 million with Factory A and Factory B, how many board feet would the company have to process and sell? (10 points) 3 If demand for lumber is uncertain, which factory is riskler? (5 points) HTMLEon I U A Paragra