m 3: Timber Lumber Company with the possibility of the US Congress relaxing restrictions on cutting old growth ts, Timber Lumber Company is considering an expansion of its facilities. The fores any believes it can sell lumber for $0.18 per board foot. A board foot is a omp easure of lumber. The tax rate for the company is 34.5%. The company is resented with the following three independent opportunities: Build factory A with annual fixed costs of S22 million and variable costs of $0.10 per board foot. The factory has an annual capacity of producing 500 million board feet. Build factory B with annual fixed costs of S11 million and variable costs of S0.12 per board foot. The factory has an annual capacity of producing 300 million board feet. Build factory C with annual fixed costs of $14 million and variable costs of S0.11 per board foot. The factory has an annual capacity of producing 400 million board feet. Required: What is the break-even point ofp and C? 1. 2. If the company desires to generate a before tax profit of $1.5 million with factory B, how many board feet would the company have to process and sell? 3. If the company desires to generate an after tax profit of $2.5 million with factory A, how many board feet would the company have to process and sell