A supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread. Machine A Machine B Capital investment $8,000 $16,000 Useful life (years) 7 7 Annual xed cost $2,000 $4,000 Variable cost per loaf $0.26 $0.16 Neither machine has a market value at the end of seven years, and MARR is 12% per year. If the demand for bread at this supermarket is 35,000 loaves per year, what strategy should be adopted for acquiring bread? Both Machine A and Machine B are capable of meeting annual demand.

a. Continue buying from the supplier. b. Install Machine A. c. Install Machine B. d. Install both Machine A and Machine B. (please show work)!!!!!