FC = 150/DOO Vc = RMsoo VC Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be RM250,000 per year and variable costs would be RM500 per equipment. Subcontracting would involve a cost per equipment of RM2,500, and expansion would require an annual fixed cost of RM50,000 and a variable cost of RM1,000 per equipment. Determine the alternative that would yield the lowest total cost for an expected annual volume of 150 equipment. (7 marks) ii) If expansion would result in an increase of RM70,000 per year in transportation costs, subcontracting would result in an increase of RM25,000 per year and adding a new location would result in an increase of RM4,000 per year, determine the new alternative that would yield the lowest total cost. (7 marks)