Ace Machinery is forecasting demand of 70,000 units of demand next year a major increase from its demand this year of 50,000 units. By adding a third shift, it could produce 75,000 units, up from its current capacity of 50,000 units. The variable cost would increase from $1.10 to $1.50 on the third shift. Another option is to purchase additional equipment, which could reduce the variable cost to $1. In addition to adding a third shift, Ace has identified two options for investing in additional equipment. One option is to invest $100,000 in new equipment, which would increase capacity by 20,000 units per year and result in variable costs of $1.20. The other equipment option is to invest $120,000 in additional equipment, which would also increase capacity by 20,000 units per year but would result in a variable cost of $1. In both cases, the equipment is expected to last for 10 years. What would you recommend Ace do?