Small Ltd. has been offered a choice to buy one out of two machines, A and B.

Question:

Small Ltd. has been offered a choice to buy one out of two machines, ‘A’ and ‘B’. You are required to compute:

(a) Break-even point for each of the machines.

(b) The level of sales at which both machines would earn equal profit.

(c) The range of sales at which one is more profitable than the other.

The relevant data is given below:image text in transcribed

The market price of the product is expected to be `10 per unit.

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