rktec Manufacturing must choose between the following two capacity options.

LOADING... Click the icon to view the options table.

Part $2$

a$.$ What would the cost be for each option if the demand level is $30$ comma $000$ units per$$ year? If it is $90$ comma $000$ units per$$ year?

Calculate the total costs for each option if the demand level is $30$ comma $000$ units per year $($enter your responses as whole$$ numbers$).$

Part $3$

Demand$($units per$$ year$)$

Total cost$($per year$)$

Option $1$

$30$ comma $000$

$$$

$$

enter your response here

Option $2$

$30$ comma $000$

$$$

$$

enter your response here

Part $4$

Find the total costs for each option if the demand level is $90$ comma $000$ units per year $($enter your responses as whole$$ numbers$).$

Part $5$

Demand$($units per$$ year$)$

Total cost$($per year$)$

Option $1$

$90$ comma $000$

$$$

$$

enter your response here

Option $2$

$90$ comma $000$

$$$

$$

enter your response here

Part $6$

b$.$ In$$ general, which option do you think would be better as volume levels$$ increase? As they$$ decrease?

A$.$

As volume levels$$ increase, Option $2$ will be$$ better, since the variable cost is lower. As volumes$$ decrease, Option $1$ will be$$ better, as the fixed cost is lower.

B$.$

As volume levels$$ increase, Option $1$ will be$$ better, since the variable cost is lower. As volumes$$ decrease, Option $2$ will be$$ better, as the fixed cost is lower.

C$.$

As volume levels$$ increase, Option $1$ will be$$ better, since the fixed cost is lower. As volumes$$ decrease, Option $1$ will be$$ better, as the variable cost is lower.

D$.$

As volume levels$$ increase, Option $2$ will be$$ better, since the fixed cost is lower. As volumes$$ decrease, Option $2$ will be$$ better, as the variable cost is lower.

Part $7$

c$.$ The indifference point is

$$

enter your response here units. $($Enter your response rounded to the nearest whole$$ number.$)$