Question: : A firm is considering three capacity alternatives: X, Y, and Z. X would have an annual fixed cost of $100,000 and variable cost of $22 per unit. Y would have annual fixed cost $120,000 and variable cost of $20 per unit. Z would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit

a) which alternative would require the lowest volume of output to generate an annual profit of $50,000?

b) which alternative will produce the highest profits for an annual output of 10,000 units?

c) which alternative has the lowest break-even quantity?