Question: Assignment Served Help Save & Exit Sub Check my wor A company that produces pleasure boats has decided to expand one of its lines. Current

Assignment Served Help Save & Exit Sub Check my
Assignment Served Help Save & Exit Sub Check my wor A company that produces pleasure boats has decided to expand one of its lines. 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 would involve substantial fixed costs but relatively low variable costs: fixed costs would be $250,000 per year, and variable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500, and expansion would require an annual fixed cost of $50,000 and a variable cost of $1,000 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "o" wherever required. Round your answers to the nearest whole number. Do not include the indifference point in your answer.) more B or to to b. Which alternative would yield the lowest total cost for an expected annual volume of 150 boats? OB

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