5. (2 point) East Company, a specialist in printing, is considering three new models of laser copying machines for use in producing high-quality copies. The selling price to the customer for each laser copy would be the same, no matter which machine is installed in the shop. The three models of laser copying machines under consideration are 1024S (a small-volume model), 1024M (a medium-volume model), and 1024G (a large-volume model). The annual rental costs and the variable operating costs vary with the size of the machine. Once installed, the rental costs are fixed. The machine capacities and costs are shown below: Copier Model 1024S 1024M 1024G Annual capacity (copies) 100,000 350,000 800,000 Costs: Annual machine rental $8,000 $11,000 $20,000 Variable costs per unit: Cost of paper 0.02 0.02 0.02 Variable operating costs 0.12 0.07 0.03 Required: a. (1 point) Determine the volume level in copies where East Company would be indifferent between acquiring either the small-volume model laser copier (1024S) or the medium volume model laser copier (1024M). b. (1 point) The management of EastQ Company is able to estimate the number of copies to be sold at each establishment. Present an analysis that would enable East Company to select the most profitable machine under different ranges of estimates.