3-17 Effects of Sales Forecast The Fragile Company has just been incorporated and plans to produce a product that will sell for $10 per unit. Preliminary market surveys show that demand will be less than 10,000 units per year, but it is not as yet clear how much less. The company has the choice of buying one of two machines, each of which has a capacity of 10,000 units per year. Machine A would have fixed costs of $30,000 per year and would yield a profit of $30,000 per year if sales were 10,000 units. Machine B has a fixed cost per year of $16,000 and would yield a profit of $24,000 per year with sales of 10,000 units. Variable costs behave linearly for both machines. 1. Breakeven sales for each machine 2. The sales level where both machines are equally profitable 3. The range of sales where one machine is more profitable than the other