Question: Consider the two capacity options for Arktec Manufacturing shown below. Suppose the company has identified the following three possible demand scenarios. Click the icon to

Consider the two capacity options for Arktec Manufacturing shown below. Suppose the company has identified the following three possible demand scenarios. Click the icon to view the capacity options table. Click the icon to view the demand scenarios table. a. The expected cost for Option 1 is $ 1492750. (Enter your response as a whole number.) The expected cost for Option 2 is $ 1559000. (Enter your response as a whole number.) Based on the given information, the best choice is Option 1. b. Suppose the lowest and highest demand levels are updated to 60,000 and 175,000, respectively. The expected cost for Option 1 is now $(Enter your response as a whole number.) Fixed cost (per year) Option 1 $700,000 Option 2 $200,000 Variable cost (per unit) $7 $12 0 Demand (units Probability per year) 45,000 25% 100,000 30% 160,000 45%

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