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.

Fixed cost (per year) Variable cost (per unit) Option 1 $550,000 $6 Option 2 $350,000 $18

Click the icon to view the demand scenarios table.

Demand (units per year) Probability 50,000 40% 70,000 35% 140,000 25%

a. The expected cost for Option 1 is $_____

(Enter your response as a whole number.)

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