(12 pts.) A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $150.000 and variable...

2. (12 pts.) A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $150.000 and variable costs of $28 per unit. Alternative B would have annual fixed costs of $145,000 and variable costs of $19 per unit. Alternative C would have fixed costs of $100,000 and variable costs of $15 per unit. Revenue (gross NOT net) is expected to be $50 per unit.a. Which alternative has the lowest break-even quantity?b. Which alternative will produce the highest profits for an annual output of 40,000 units?c. Which alternative would require the lowest volume of output to generate an annual profit of $100,000?

Solution:a. Which alternative has the lowest break-even quantity?Alternative A Alternative B Alternative C Sale Price per unitLess:Variable Cost perunit 50 50 50 28 19 15 Contribution Per Unit...