PROBLEM III (Multiple Alternatives): A firm has three alternatives A, B, or C to produce an item Alternative A would have an annual fixed cost of $16,206 and a variable cost of $92 per unit. Alternative B would have an annual fixed cost of S 38.192 and a variable cost of $73 per unit. Alternative C would have an annual fixed cost of $68,550 and a variable cost of $54 per unit. The selling price is $129 per unit. (12) Which alternative has the lowest break-even point (BEP)? (a) Alternative A (b) Alternative B (c) Alternative C (d) Both B and C (13) Which alternative will yield the highest profit at an output level of 1500? (a) Alternative A (b) Alternative B (c) Alternative C (d) Both B and C (14) The highest profit you can make at an output level of 2000 is: (a) $57,794 (b) $73,808 (c) $81,450 (d) None of the above (15) The output level at which you will switch from Alternative B to C is: (b) 914 (c) 1157 (d) 1598 (Mark the closest answer) (16) Which alternative would require the lowest volume of output to generate a profit of $30,000? (a) Alternative A (b) Alternative B (c) Alternative C (d) Both B and C (a) 682