Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. A company that produces pleasure boats has decided to expand one of its lines. Current facilities areinsufficient to handle the increased workload, so the company is considering three alternatives, A (newlocation), B (subcontract), and C (expand existing facilities).Alternative A would involve substantial fixed costs but relatively low variable costs: fixed costs would be$255,000 per year, and variable costs would be $590 per boat. Subcontracting would involve a cost perboat of $2,520, and expansion would require an annual fixed cost of $56,000 and a variable cost of $1,120per boat.a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cellsblank - be certain to enter "0" wherever required. Round your answers to the nearest wholenumber.)ABCOOOortotomoreb. Which alternative would yield the lowest total cost for an expected annual volume of 290 boats?AB

Answered: Image /qna-images/answer/134ad99b-b532-4230-8927-b68de3d86324.jpg

a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.) A B C OOG or to to more b. Which alternative would yield the lowest total cost for an expected annual volume of 290 boats? A B

a. Find the range of output for each alternative that would yield the lowest total cost. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.) A B C OOG or to to more b. Which alternative would yield the lowest total cost for an expected annual volume of 290 boats? A B

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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