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Please solve this problem Thank you ABC Company has two machines, each machine working separately, but theyproduce the same parts. The variable and fixed costs
Please solve this problem Thank you
ABC Company has two machines, each machine working separately, but theyproduce the same parts. The variable and fixed costs of those two machines aresummarized in the following table. Machine 1 (M1) cycle time is 1 part/ 3hours and Machine 2 (M2) cycle time is 1 part/ 1 hour. The manager wants to invest in a new machine (M3), the new machine'sfixed cost is $15.000. the variable cost is $400 / 10 parts, and it needs two operators:its cycle time is one part / 1 hour, If he decided to buy the new machine, thepart price would increase by 30%. Cost Fixed Cost Variable Cost (per 10 parts) Number of operators (50/hour) Part Price MI M2 $20,000 $10,000 $500 $300 2 1 $500 3 Breakeven point unit before buying machine 3 * (2 Points) Breakeven point unit after buying machine 3 (2 points) Enter our answer I 5 How many parts does he need to sell to get a $10,000 operating income before buying machine 3 (2 points) Enter your answer 6 How many parts does he need to sell to get a $10,000 operating income after buying machine 3 (2 Points) Enter your answer This question is required. 7 Based on your answer, which option should he choose? * 12 Points) Enter yourStep by Step Solution
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