Question 1. Caliber Yachts in St Petersburg is going into production with a new model. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). - Alternative A, new location, would involve substantial fixed costs but relatively low variable costs: fixed costs would be $150,000 per year, and variable costs would be $500 per boat. - Alternative B, subcontracting would involve a cost per boat of $2,500 - Alternative C, expansion would require an annual fixed cost of $40,000 and a variable cost of $1,250 per boat