Need help with the last question.

Problem 2 3 Question Help Arktec Manufacturing must choose between the following two capacity options. Click the icon to view the options table. a. What would the cost be for each option if the demand level is 35,000 units per year? If it is 85,000 units per year? Calculate the total costs for each option if the demand level is 35,000 units per year (enter your responses as whole numbers). Total cost (per year) Demand (units per year) 35,000 35,000 Option 1 Option 2 $ 775000 $ 620000 Find the total costs for each option if the demand level is 85,000 units per year (enter your responses as whole numbers). Total cost (per year) Demand (units per year) 85,000 85.000 Option 1 Option 2 $ 1025000 $ 1220000 b. In general, which option do you think would be better as volume levels increase? As they decrease? A. As volume levels increase, Option 1 will be better, since the variable cost is lower. As volumes decrease, Option 2 will be better, as the fixed cost is lower. OB. As volume levels increase Option 1 will be better, since the fixed cost is lower. As volumes decrease, Option 1 will be better, as the variable cost is lower. OC. As volume levels increase, Option 2 will be better, since the fixed cost is lower. As volumes decrease Option 2 will be better, as the variable cost is lower. OD. As volume levels increase Option 2 will be better, since the variable cost is lower. As volumes decrease, Option 1 will be better, as the fixed cost is lower. c. The indifference point is units. (Enter your response rounded to the nearest whole number.) Enter your answer in the answer box and then click Check Answer. Demiana (units per vear) Total cost (per year) i X - More Info 0 Fixed cost (per year) $600,000 $200,000 Variable cost (per unit) $5 $12 Option 1 Option 2 ol Print Done nd ower. nce the fixed cost is lower. As volumes decrease, Option 1 will be better, as the variable cost is lower. nce the fixed cost is lower. As volumes decrease, Option 2 will be better, as the variable cost is lower. nce the variable cost is lower. As volumes decrease, Option 1 will be better, as the fixed cost is lower