Kuat Rimau Sdn Bhd that produces frozen murtabak has decided to expand its business by producing a new product which is frozen curry puffs. The current factory in Sepang, Selangor is small and insufficient to handle the increased workload, hence the company is considering three options also in Selangor; 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 RM300,000 per year, and variable costs would be RM5 per pack. Subcontracting would involve a cost per pack of RM25, and expansion would require an annual fixed cost of RM50,000 and a variable cost of RM10 per pack. i) Identify the range of output for each alternative that would yield the lowest total cost [CO2/PO2/C3] (5.5 marks) ii) Determine the option and its lowest total cost for an expected annual volume of 35100 packs. [CO2/PO2/C3] (1.5 marks) Explain two factors might be considered in choosing between expansion and subcontracting [CO2/PO2/C3] (3 marks) Kuat Rimau Sdn Bhd that produces frozen murtabak has decided to expand its business by producing a new product which is frozen curry puffs. The current factory in Sepang, Selangor is small and insufficient to handle the increased workload, hence the company is considering three options also in Selangor; 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 RM300,000 per year, and variable costs would be RM5 per pack. Subcontracting would involve a cost per pack of RM25, and expansion would require an annual fixed cost of RM50,000 and a variable cost of RM10 per pack. i) Identify the range of output for each alternative that would yield the lowest total cost [CO2/PO2/C3] (5.5 marks) ii) Determine the option and its lowest total cost for an expected annual volume of 35100 packs. [CO2/PO2/C3] (1.5 marks) Explain two factors might be considered in choosing between expansion and subcontracting [CO2/PO2/C3]