which statement is/are true?

a. 1 only

b. 2 only

c. 2 and.3 only

d. 1 and 2 only

e. 1,2 and 3

The Big Manufacturing Firm (BMF) produces three different products: Alpha, Bravo and Charlie. MF is deciding whether to use an external supplier to produce units of Charlie that it can then also sell to its customers. Which of the following factors would likely cause BMF to be willing to pay a higher price to the external supplier for Charlie (all else being equal)? 1. An increase in customer demand for Charlie which causes BMF to be unable to meet some of this demand through its own production 2. An increase in BMF's variable cost per unit to produce Charlie 3. A longer contract term with the external supplier which would then have an impact on some of BMF's fixed costs