Untouchable package service (ups) offers overnight package delivery to canadian business customers. ups has recently decided to expand its facilities to better satisfy current and projected demand. current volume totals 2 million packages per week at a price of $12 each, and average variable costs are constant at all output levels. fixed costs are $3 million per week, and profit contribution averages one-third of revenues on each delivery. after completion of the expansion project, fixed costs will double, but variable costs will decline by 25 percent.

Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?