Fast Q Company, a specialist in printing, has established 500 convenience copying centers throughout the country. In order to upgrade its services, the company is considering three new models of laser copying machines for use in producing high-quality copies. These high quality copies would be added to the growing list of products offered in the Fast Q shops. The selling price to the customer for each laser copy would be the same, no matter which machine is installed in the shop. The three models of laser copying machines under consideration are 1024S, a small-volume model, 1024M, a medium volume model, and 1024G, a large-volume model. The annual rental costs and the variable operating costs vary with the size of the machine. The machine capacities and costs are shown below.

Required:

(1) Determine the volume level in copies where Fast Q Company would be indifferent between acquiring either the small-volume model laser copier (1024S) or the medium volume model laser copier (1024M).

(2) The management of Fast Q Company is able to estimate the number of copies to be sold at each establishment. Present an analysis that would enable Fast Q Company to select the most profitable machine without having to make a separate cost calculation for each establishment. (CMA Adapted)