NAME in-cusse 3. A manager has been wing a certain technique to forecast demand for callons of ice cream foe the pant sis periodh CALCULATE THE ERROR USAVG THE MAD, MSE, AND MAN MITHOOS. BUS1 3321 - OPERATIONS MANAGEMENT HCMEWCRK 1 ( 1 CH 16 - S SUMMER 2003 NAM o inciass Qees=RvFC Profit (P)=TRTC=RQ(FC+vQ)=Q(Pv)FC A firm is considering thre capacity altematives: A, B, and C. Alternative A woold have an annual fand cent of $100,000 and variable costs of $22 per unit. Alternative B would have annual flued costs of $120,000 and variable costs of $20 per unit, Alternative C would have fixed conts of $80,000 and variable tents of $30 per unit. Revenue is expected to be $50 per unit. (A) Which aternative has the lowest break-even guantio? (B) Which altemative will produce the Nighert erofits for an annual output of 10,000 units? (C) Which alternative would require the lowest wolume of output to generate an antaal profit of SSO O00? (0) Which atternative should I choose for a quantity of 25,000 units? (HENT: THERE ARE 2 INDIFFERENCE POINTS)