$K$

company currently charges $$0\mathrm{.}25$ per page to its customers. The paper used in printing costs the company $$0\mathrm{.}09$ per page and other variable costs, including hourly labor, amount to $$0\mathrm{.}10$ per page.

Read the requirements.

Requirement $1.$ What is the company's breakeven 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 $"0"$ for any zero balances.$)$

$1+q,,Br=$ Breakeven number of units

What is it under the new commission$-$based agreement? $($Enter a $"0"$ for any zero balances.$)$

The company's breakeven point under the new

commission$-$based agreement is $$ units.

Requirement $2.$ For what range of sales levels will Direct prefer $($a$)$ the fixed lease agreement and $($b$)$ the commission agreement?

In order to determine the range of sales levels Direct would prefer for each agreement, we must first calculate the indifference point.

The indifference

point $=$

Now calculate the indifference point. $($Round to the nearest whole number.$)$

The indifference

point is at $$nits$.$

Direct would prefer the fixed lease agreement at $$

The commission based agreement would be preferred a $$ What is the expected value of each agreement? Which agreement should Direct choose?

Begin with the fixed leasing agreement. $($Use hirentheses or a minus sign for losses.$)$

Fixed leasing agreement

Expected

$\backslash$table$[[\backslash$table$[[$Sales$],[$level$]],$Profit$($Loss$)$ Profit$/($Loss$)],[26,000,],[36,000,],[46,000,$