Question: - More info Fixed cost (per Variable cost year) (per unit) $550,000 $3 $50,000 $19 Option 1 Option 2 - X More info Probability Demand

- More info Fixed cost (per Variable cost year)

- More info Fixed cost (per Variable cost year) (per unit) $550,000 $3 $50,000 $19 Option 1 Option 2 - X More info Probability Demand (units per year) 35,000 70,000 120,000 40% 35% 25% 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. E! Click the icon to view the demand scenarios table. a. The expected cost for Option 1 is $ 755500. (Enter your response as a whole number.) The expected cost for Option 2 is $ 1351500. (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 55,000 and 140,000, respectively. The expected cost for Option 1 is now s(Enter your response as a whole number.)

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