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A small producer of machine tools wants to move to a larger building, and has identified two alternatives, Location A has annual fixed costs of $115,000 and variable costs of $9,000 per unit; location 8 has annual fixed costs of $315,000 and variable costs of $5.000 per unit. The finished items sell for $14,000 each. a. At what volume of output would the two locations have the some total cost? b-1. For what range of output would location A be superior? (Enter your answer as a whole number. Do not include the indifference point in your answer.) b-2. For what range would B be superior? (Enter your answer as a whole number. Do not include the indifference polnt in your answer.) A company that produces pleasure boats has decided to expand one of its lines, Current facilities are insufficient to handle the increased workload, so the company is considering three alternotives, A (new location), B (subcontract), and C (expand existing tacilities) Alternative A would involve substantial ficed costs but relatively low variable costs: fixed costs would be $290,000 per year, and variable costs would be $900 per boot Subcontracting would involve a cost per bost of $2,400, ond expansion would require an annual fixed cost of $66.000 and a variable cost of $1,00 per boat. Expansion would result in an increase of $86.000 per yeor in transpontotion costs, subcontrocting would result in an increase of $28,000 per year, and adding a new location would result in an increase or $4,800 per year. Which alternative would yield the lowest total cost for an expected annual volume of 149 boots

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