ANSWER THE FOLLOWING QUESTIONS WITH FULL EXPLANATION AND STEP:

Q3) Corrigan Enterprises produced two electrical component models. Data of each model is as follows. For Model no. 6000: Variable cost is $50.00 per unit, annual fixed cost is $200,000. For Model no. 4000: Variable cost is $52.00 per unit, annual fixed cost is $190,000.Selling price of model no. 6000 is $90 per unit and $100 for model no. 4000. Maximum ten machines can be hired for the production of Model no. 6000 and maximum five machines can be hired for the production of second model. Supplier will charge the rent $40,000 per machine per annum that produced Model 6000 and for other model he will charge $50,000 per machine per annum. The production capacity of a machine which produce model 6000 and model 4000 is 1,500 units and 2,500 units respectively. Required: How many units must the company sell to break even if Model no. 6000 is selected?