Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $11,500 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Units Sold Sales Price Per Unit Current 221,000 New Machine $2.15 Variable Cost Per Unit $1.75 Contribution Margin Per Unit $0.40 Fixed Costs $56,000 Break-Even (in units) 140,000 Break-Even (in dollars) $301,000 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current Sales $475,150 Variable Costs 386,750 Contribution Margin $88,400 Fixed Costs 56,000 Net Income (Loss) $32,400 New Machine C. What would your recommendation be to Flanders regarding this purchase? a. The new equipment will increase fixed costs substantially but net income will still increase due to the increased variable cost savings, which leads to a higher contribution margin. The machine should be purchased. b. The new equipment will decrease fixed costs substantially and net income will increase due to the increased variable cost savings, which leads to a higher contribution margin. The machine should be purchased. c. The new equipment will increase fixed costs substantially and net income will decrease due to the decreased variable cost savings, which leads to a lower contribution margin. The machine should not be purchased. d. The new equipment will decrease fixed costs substantially but net income will still decrease due to the decreased variable cost savings, which leads to a lower contribution margin. The machine should not be purchased.