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please help Maryland Manufacturing (M2) produces a part using an expenswe propeietary machine that can only be leased. The leasing company orlers two contracts. The

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Maryland Manufacturing (M2) produces a part using an expenswe propeietary machine that can only be leased. The leasing company orlers two contracts. The first (unil-fate lease) is one where M2 would pay 520 per unit produced, regardless of the number of units. The second lease option (flat-rate lease) is one where M2 would pay \$442,000 annually, regardless of the number produced. The lease wil rin one year and the lease option chosen cannot be changed during the lease. All other lease terms are the same. M2 sels the part for $210 per unit and unit variable cost (excluding any machine lease costs) are $110. Annual fared costs fexcluding any machine lease costsy are $1,450,000 Required: a. What is the annual break-even level assuming 1. The unitrete loase? 2. The flot-rate lease? b. At what annual volume would the operating profit be the same regardless of the royalty option chosen? c. Suppose M2 is unsure of the pricing and costs for the part (other than the costs of the lease under the fwo payment options). At What annual volume would the operasing profit be the samo regardless of the lease payment option chosen? d. Assume an annual volume of 32,500 parts. What is the operating leverage assuming. 1. The unitrate lease? 2. The flat-rate loase? e. Assume an annual volume of 32,500 parts. What is the margin of safety assuming 1. The unitrate lease? 2. The fiat-rate lease? Complete this question by entering your answers in the tabs below. At what annual volume would the operating profit be the same regardless of the rovalty option chosen? Maryland Manutacturing (M2) produces a part using an expensive proprietary mochine that can only be leesed. The leasing company offers two contracts. The first (unil-rate lease) is one where M2 would pay $20 per unit produced, regardless of the number of units. The second lease option (llat-rate lease) is one where M2 would pay $442,000 annually, regardless of the number produced. The lease will run one year and the lease option chosen cannot be changed during the lease. All other lease terms are the same. M2 sells the part for $210 per unit and unit variable cost (excluding any machine lease costs) are $110. Annual fixed costs (excluding any machine lease costs) are $1,450,000. Required: a. What is the annual break-even level assuming 1. The unitrate lease? 2. The flat-rate lease? b. At what annual volume would the operating profit be the same regardless of the royalty option chosen? c. Suppose M2 is unsure of the pricing and costs for the part (other than the costs of the lease under the two payment options). At What annual volume would the operating profit be the same regardloss of the lease payment option chosen? d. Assume an annual volume of 32,500 parts, What is the operating leverage assuming 1. The unit-rate lease? 2. The flat-rate lease? e. Assume an annual volume of 32,500 parts. What is the margin of safety assuming 1. The unit-rate lease? 2. The flat-rate lease? Complete this question by entering your answers in the tabs below. What is the annual break-even level assuming Maryland Manufacturing (M2) produces a part using an expensive proprietary machine that can anly be leased. The leasing company offers two contracts. The first (unit-rate lease) is one where M2 would pay $20 per unit produced, regardless of the number of units. The second lease option (flat-rate lease) is one where M2 would pay $442,000 annually, regardless of the number produced. The lease will run one year and the lease option chosen cannot be changed during the lease. All other lease terms are the same. M2 solls the part for $210 per unit and unit voriable cost (excloding any machine lease costs) are \$110. Annual fixed costs (excluding any machine lease costs) are $1,450,000. Required: a. What is the annual break-even level assuming 1. The unitrate lease? 2. The flat-rate lease? b. At what annual volume would the operating profit be the same regardless of the royalty option chosen? c. Suppose M2 is unsure of the pricing and costs for the part (other than the costs of the lease under the two payment options). At what annual volume would the operating profit be the sane regardless of the lease payment option chosen? d. Assume on annual volume of 32,500 parts. What is the eperating leverage assuming 1. The untrate lease? 2. The flat-rate lease? e. Assume an annual volume of 32,500 parts. What is the margin of safety assuming 1. The unit-rate lease? 2. The fiatrate lease? Complete this question by entering your answers in the tabs below. Suppose M2 is unsure of the pricing and costs for the part (other than the costs of the lease under the two payavent optlons). At what anhual volume would the operating profit be the same regardless af the lease payment option chasen? Maryland Manufacturing (M2) produces a part using an expensive proprietary machine that can only be leased. The feasing company offers two contracts. The first (unit-rate lease) is one where M2 would pay $20 per unit produced, regardless of the number of units. The second lease option (flat-rate lease) is one where M2 would pay $442,000 annually, regardless of the number produced. The lease will run one year and the lease option chosen cannot be changed during the lease. All other lease terms are the same. M2 sells the part for $210 per unit and unit variable cost (excluding any machine lease costs) are $110. Annual fond costs (excluding any machine lease costs) are $1,450,000. Required: a. What is the annual break-even level assuming 1. The unit-rate lease? 2. The flat-rate lease? b. At what annual volume would the operating profit be the same regardless of the foyalty option chosen? c. Suppose M2 is unsure of the pricing and costs for the part (other than the costs of the lease under the two payment options). At what annual volume would the operating profit be the same regardiess of the lease payment option chosen? d. Assume an annual volume of 32,500 parts. What is the operating leverage assuming 1. The unit-rote lease? 2. The flat-rate lease? e. Assume an annual volume of 32,500 parts. What is the margin of safety assuming 1. The unit-rate lease? 2. The flat-rate lease? Complete this question by entering your answers in the tabs below. Assume an annual volume of 32,500 parts. What is the margin of safety assuming Note: Round your answers to 1 decimal place. Maryland Manufacturing (MZ) produces a part using an expensive proprietary machine that can only be leased. The leasing company offers two contracts. The first (unit-rate lease) is one where M2 would pay $20 per unit produced, regardless of the number of units. The second lease option (tlat-rate lease) is one where M2 would pay $442,000 annually, regardless of the number produced. The lease will run one year and the lease option chosen cannot be changed during the lease. All other lease terms are the same. M2 selis the part for $210 per unit and unit variable cost (excluding any machine lease costs) are $110. Annual fixed costs (excluding any machine lease costs) are $1,450,000. Required: a. What is the annual break-even level assuming 1. The unit-rate lease? 2. The flat-rate lease? b. At what annual volume would the operating profit be the same regardless of the royalty option chosen? c. Suppose M2 is unsure of the pricing and costs for the part (other than the costs of the lease under the two payment options). At what annual volume would the operating profit be the same regardless of the lease payment option chosen? d. Assume an annual volume of 32.500 parts. What is the operating leverage assuming 1. The unit-rate lease? 2. The flat-rate lease? e. Assume an annual volume of 32,500 parts. What is the margin of safety assuming 1. The uniturate lease? 2. The flat-rate lease? Complete this question by entering your answers in the tabs below. Assume an annual volume of 32,500 parts. What is the operating leverage assuming Note: Round your answers to 2 decimal places

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