2. A commercial machine shop regularly produces a stainless-steel component for a major electronics manufacturer. The machine shop purchases the component from a nearby specialty steel company in semi- finished condition, performs drilling and milling operations on the part, and ships it to the electronics firm. The machining operations are those that can readily be performed on a tape-controlled drill press with a turret head. Thus, the management of the machine shop feels the purchase of such a machine to produce only this part is economically justified. An engineer is the assigned the task of determining the production quantity for breakeven, assuming a time value of money equal to zero. 30 The engineer compiles the following information and cost estimates. The tape -controlled machine will have an installed first cost of $60,000, which includes the necessary electronic software, cutting tools and holders, and work-holding devices. Training of the operator for the machine is included in the purchase price. The economic life of the machine is assumed to be 10 years with a salvage value of $20,000 at that time. The decrease in asset value is estimated at $4000/year and judged to be an annual fixed cost. Other fixed costs are $1500/year. The steel parts are sold to the electronics firm for $17.30/unit. The variable unit costs are estimated as$1.70 for direct labour, $7.00 for direct material, and $3.50 for overhead (excluding depreciation of the machine - the $4000/year fixed cost mentioned previously). What annual sales volume is required to break even on the machine purchase if linearity is assumed