(Break-even analysis)The Marvel Mfg. Company is considering whether or not to construct a new robotic production facility. The cost of this new facility is $588,000 and it is expected to have a six-year life with annual depreciation expense of $98,000 and no salvage value. Annual sales from the new facility are expected to be $1,960 units with a price of $1,070 per unit. Variable production costs are $620 per unit, and fixed cash expenses are $85,000 per year.

a. Find the accounting and the cash break-even units of production.

b. Will the plant make a profit based on its current expected level of operations?

c.Will the plant contribute cash flow to the firm at the expected level of operations?