Litton Productions, Inc. owns and operates a chain of movie theaters. The theaters in the chain vary from low volume, small town to high volume, Big City/downtown theaters. Management is considering installing machines that will make popcorn on the premises. This proposed feature would be properly advertised and is intended to increase patronage at the company's theaters. These machine are available in two different sizes with the following details: Economy Regular Annual capacity (in boxes) 50,000 120,000 Costs Annual machine rental P 80,000 P110,000 Popcorn cost per box 1.30 1.30 Cost of each box 0.80 0.80 Other variable costs/box 2.20 1.40 The level of output in boxes at which the Economy Popper and the Regular Popper would earn the same profit (loss) is 40,000 50,000 37,500 65,000