Question: please help me solve this and explain, thank you. A newly formed firm must decide on a plant location. There are two alternatives under consideration:

please help me solve this and explain, thank you.please help me solve this and explain, thank you.please help me solve this and explain, thank you.

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs compared to locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $170 in either case. Omaha Kansas City Annual fixed costs ($ millions) $ 0.9 $ 1.0 Variable cost per unit $ $ 35 Expected annual demand (units) 9,400 10,000 20 Click here for the Excel Data File Using the above information, determine which location would produce the greater profit. would produce the greater gross profit of Omaha Kansas City A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be $285,000 per year, and variable costs would be $610 per boat. Subcontracting would involve a cost per boat of $2,610, and expansion would require an annual fixed cost of $62,000 and a variable cost of $1,020 per boat. a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to the nearest whole number.) A or more B to to b. Which alternative would yield the lowest total cost for an expected annual volume of 330 boats? OB C. What other factors might be considered in choosing between expansion and subcontracting? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) subcontracting costs will be known with greater certainty subcontracting provides a secondary (backup) source of supply expansion offers more control over operations O expansion costs will be known with greater certainty O subcontracting offers more control over operations

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