Problem $4.$

California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in $2$pound bags. Doug Voss, Operations VP$,$ is considering a new Hi$-$Speed shredder to replace the old machine, referred to in the shop as "Clunker." Hi$-$Speed will have a fixed cost of $$85,000$ per month and a variable cost of $$1\mathrm{.}25$ per bag. Clunker has a fixed cost of only $$44,000$ per month, but a variable cost of $$1\mathrm{.}75.$ Selling price is $$2\mathrm{.}50$ per bag.

a$.$ What is the crossover point in units $($point of indifference$)$ for the processes?

b$.$ What is the monthly profit or loss if the company changes to the Hi$-$Speed shredder and sells $60,000$ bags per month?

c$.$ What is the monthly profit or loss if the company stays with Clunker and sells $60,000$ bags per month?