Manufacturing Company: Basic vs. Deluxe

A manufacturing company is considering two models of machines, Basic versus Deluxe, to produce a new product. Foer the basic model, FC is $4000, VC is $7/unit, and Price is $15/unit. For the Deluxe model, FC is $9000, VC is $3, and P is $15/unit.

a. If quantity is 1,250 units, which model would this company produce: Basic or Deluxe?

b. What if demand goes up to 2,000 unit, then which model is more profitable?

c. What demand goes down to 780, then which model would be more profitable to produce?