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Richmond Street Microbrewery makes Western Beer, which it bottles and sells in its adjoining pub/restaurant and by the case. It costs $1100 to set up, brew and bottle a batch of the beer. The annual cost to store the beer is $2.75 per bottle. Thi annual demand for the beer is 16,000 bottles and the brewery has the capacity to produce 28,000 bottles annually. The current production policy is to continue producing the beer until the storage gets full. The storage holds a maximum of 750 bottles of beer. Production starts again when the inventory of beer is depleted. The brewery can operate 365 days per year. The total cost for the current quantity produced is 11088.39. The owners of the brewery are considering an option of increasing the beer storage space to hold a maximum of 3000 battles as part of their expansion strategy for the next five years. Is this a good option in terms of the cost savings? A. Yes; if storage is expanded, the brewery can produce 7000 bottles at a time and TC will only be $5639. O B. No; if storage is expanded, the brewery can produce 7000 bottles at a time and TC=$12139,29. C. No: if storage is expanded, the total cost will be $1050.90 higher. P/D. Yes; if storage is expanded, the total cost will be $4449.10 lower

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