Acompany 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 alternatives, a (new location), b (subcontract), and c (expand existing facilities).alternative a would involve substantial fixed costs but relatively low variable costs: fixed costs would be $310,000 per year, and variable costs would be $400 per boat. subcontracting would involve a cost per boat of $3,200, and expansion would require an annual fixed cost of $74,000 and a variable cost of $1,200 per boat. expansion would result in an increase of $88,000 per year in transportation costs, subcontracting would result in an increase of $32,000 per year, and adding a new location would result in an increase of $5,300 per year. which alternative would yield the lowest total cost for an expected annual volume of 111 boats?