Direct Printing Company currently leases its only copy machine for $1.500 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based Under the new agreement, Direct would pay a commission for its printing at a rate of $20 for every 500 pages printed. The company currently charges 50.21 per page to its customers. The paper used in printing costs the company $0.02 per page and other variable costs, including hourly labor amount to $0.13 per page Read the requirement Requirement 1. What is the company's breakoven point under the current leasing agreement? What is it under the new commission based agreement? First, determine the formula used to calculate the breakeven point in units, then calculate the company's breakeven point under the current leasing agreement (Enter a "O for any zero balances) Contribution margin per unit = Breakeven number of units 1.500 0.06 25.000 Fixed costs S What is it under the new commission-based agreement? (Enter a "O" for any zero balances.) The company's breakeven point under the new commission based agreement is units 1. What is the company's breakeven point under the current leasing agreement? What is it under the new commission-based agreement? 2. For what range of sales levels will Direct prefer (a) the fixed lease agreement and (b) the commission agreement? 3. Direct estimates that the company is equally likely to sell 21,000, 31,000, 41,000, 51,000, or 61,000 pages of print. Using information from the original problem, prepare a table that shows the expected profit at each sales level under the fixed leasing agreement and under the commission-based agreement. What is the expected value of each agreement? Which agreement should Direct choose