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Problem Set 8 Note: You will find the Example videos in the module very helpful in answering these questions. Please type in the space provided. Question 1. Caliber Yachts in St Petersburg is going into production with a new model. 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). (60 points) . Alternative A, new location, would involve substantial fixed costs but relatively low variable costs: fixed costs would be $100,000 per year, and variable costs would be $1,000 per boat. Alternative B, subcontracting would involve a cost (VC) per boat of $5,000 Alternative C, expansion would require an annual fixed cost of $50,000 and a variable cost of $1,250 per boat Make sure you are comparing the Enter Output correct alternatives to calculate your Enter Amount (10 points) answer (10 points) a. Subcontracting (B) will be the best choice if output is (enter less than or greater than) how many boats? b. A new location (A) will be the best choice if output (enter less than or greater than) how many boats? c. What other factors might you consider when choosing between expanding (C) and subcontracting (B)? (20 points)Question 2. Waste Management's Hazardous Waste Division, wants to minimize the shipping cost for shipments to a disposal center from five receiving stations 1t operates. Given the locations of the receiving stations as shown below, determine the location of the disposal center rounded to the nearest whole number. Show the numeric values of the calculations. (40 points, 20 points each). B 7 A. 6 @D Qa = 3 6" B 4