Question: Please make sure you read the hint below, before you answer A, B, C & D. Thanks. FC Q R-V Profit (P) = TR -

Please make sure you read the hint below, before

Please make sure you read the hint below, before you answer A, B, C & D. Thanks.

FC Q R-V Profit (P) = TR - TC = RX Q-(FC +vxQ) = Q(R-) FC A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. (A) Which alternative has the lowest break-even quantity? (B) which alternative will produce the highest profits for an annual output of 10,000 units? (C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000? (D) Which alternative should I choose for a quantity of 25,000 units? (HINT: THERE ARE 2 INDIFFERENCE POINTS)

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