A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to ha

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A company that produces pleasure boats has decided to expand oneof its lines. Current facilities are insufficient to handle theincreased workload, so the company is considering threealternatives, A (new location), B (subcontract), and C (expandexisting facilities).Alternative A would involve substantial fixed costs but relativelylow variable costs: fixed costs would be $305,000 per year, andvariable costs would be $530 per boat. Subcontracting would involvea cost per boat of $2,530, and expansion would require an annualfixed cost of $60,000 and a variable cost of $1,050 per boat.a. Find the range of output for eachalternative that would yield the lowest totalcost. (Leave no cells blank - be certain to enter "0"wherever required. Round your answers to the nearest wholenumber.) A company that produces pleasure boats has decided to expandone of its lines. Current facilities are insufficient to handle theincreased workload, so the company is considering threealternatives, A (new location), B (subcontract), and C (expandexisting facilities).Alternative A would involve substantial fixed costs but relativelylow variable costs: fixed costs would be $305,000 per year, andvariable costs would be $530 per boat. Subcontracting would involvea cost per boat of $2,530, and expansion would require an annualfixed cost of $60,000 and a variable cost of $1,050 per boat.a. Find the range of output for eachalternative that would yield the lowest totalcost. (Leave no cells blank - be certain to enter "0"wherever required. Round your answers to the nearest wholenumber.) A company that produces pleasure boats has decided to expandone of its lines. Current facilities are insufficient to handle theincreased workload, so the company is considering threealternatives, A (new location), B (subcontract), and C (expandexisting facilities).Alternative A would involve substantial fixed costs but relativelylow variable costs: fixed costs would be $305,000 per year, andvariable costs would be $530 per boat. Subcontracting would involvea cost per boat of $2,530, and expansion would require an annualfixed cost of $60,000 and a variable cost of $1,050 per boat.a. Find the range of output for eachalternative that would yield the lowest totalcost. (Leave no cells blank - be certain to enter "0"wherever required. Round your answers to the nearest wholenumber.)
A ___ or more
B ___ to ___
C ___ to ___
b. Which alternative would yield thelowest total cost for an expected annual volume of 240 boats? multiple choice
A
B
C
C. What other factors might be consideredin choosing between expansion and subcontracting? (Youmay select more than one answer. Single click the box with thequestion mark to produce a check mark for a correct answer anddouble click the box with the question mark to empty the box for awrong answer. Any boxes left with a question mark will beautomatically graded as incorrect.)
check all that apply