Neptune Industries is studying the acquisition of two electrical connector systems that are integral for production of its leading product, a self-propelled vacuum. Data relevant to the systems follow. Model A: Variable costs, $16.00 per unit Annual fixed costs, $985,600 Model B: Variable costs, $12.80 per unit Annual fixed costs, $1,113,600 Neptune's selling price is $64 per unit for the vacuum, which is subject to a 5 percent sales commission. For this problem, ignore income taxes. Required: 1. How many units must the company sell to break even if Model A is selected? 2. Which of the two systems would be more profitable if sales and production are expected to average 46,000 units per year? 3. At what volume level will management be indifferent between the acquisition of Model A and Model B? In other words, at what volume level will the annual total cost of each system be equal? (Hint. At any given sales volume, sales commissions will be the same amount regardless of which model is selected.)