solve within 30 minutes Arktec Manufacturing must choose between the following two capacity options.Click the icon view the options table.a. What would the cost be for each option if the demand level is 20,000 units per year? If it is 100,000 units per year?Calculate the total costs for each option if the demand level is 20,000 units per year (enter your responses as whole numbers).Demand (unitsper year)20,00020,000Option 1Option 2Find the total costs for each option if the demand level is 100,000 units per year (enter your responses as whole numbers).Demand (unitsper year)100,000100,000More InfoOption 1Option 2b. In general, which option do you think would be better as volume levels increase? As they decrease?OA. As volume levels increase, Option 1 will be better, since the fixed cost lower. As volumes decrease, Option 1 will be better, as the variable cost is lower.OB. As volume levels increase, Option 2 will be better, since the fixed cost is lower. As volumes decrease, Option 2 will be better, as the variable cost is lower.OC. As volume levels increase, Option 2 will be better, since the variable cost is lower. As volumes decrease, Option 1 will be better, as the fixed cost is lower.O D. As volume levels increase, Option 1 will be better, since the variable cost is lower. As volumes decrease, Option 2 will be better, as the fixed cost lower,c. The indifference point is units. (Enter your response rounded to the nearest whole number.)Option 1Option 2Fixed cost (peryear)PrintTotal cost (per year)$900,000$400,000Total cost (per year)Variable cost(per unit)Done$3$17

Here, there are two options, Option 1 and Option 2, for each option, I would determine the total…

a. What would the cost be for each option if the demand level is 20,000 units per year? If it is 100,000 units per year? Calculate the total costs for each option if the demand level is 20,000 units per year (enter your responses as whole numbers). Demand (units per year) 20,000 20,000 Option 1 Option 2 Find the total costs for each option if the demand level is 100,000 units per year (enter your responses as whole numbers). Demand (units per year) 100,000 100,000 Option 1 Option 2 b. In general, which option do you think would be better as volume levels increase? As they decrease? Total cost (per year) Total cost (per year) O A. As volume levels increase, Option 1 will be better, since the fixed cost is lower. As volumes decrease, Option 1 will be better, as the variable cost is lower. O B. As volume levels increase, Option 2 will be better, since the fixed cost is lower. As volumes decrease, Option 2 will be better, as the variable cost is lower. OC. As volume levels increase, Option 2 will be better, since the variable cost is lower. As volumes decrease, Option 1 will be better, as the fixed cost is lower. O D. As volume levels increase, Option 1 will be better, since the variable cost is lower. As volumes decrease, Option 2 will be better, as the fixed cost is lower. c. The indifference point is units. (Enter your response rounded to the nearest whole number.)

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P