A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $42,000 and the variable cost will be $29 per unit after the update. For plan B, the fixed costs will be $44,000 and the variable cost will be $28 per unit after the update. Please answer the following questions:



(a) Suppose the selling price is $50, what is the break-even volume for each plan? Which plan has a lower break-even volume?

(b) Suppose the selling price is $50. Also, the company aims to achieve a profit of $21,000 after the update. What selling volume will be required to achieve the profit for each plan? Which plan has a lower volume?