Problem.3 A company wants to buy a new machine to replace one which is having frequent break- down. It received offers for two models M, and M2. Further details regarding these models are given below: M M2 Installed capacity (units) 10,000 10,000 Fixed overhead per annum ($) 2,40,000 1,00,000 Estimated profit at the above capacity (s) 1,60,000 1,00,000 The product manufactured using this type of machine (M, or My) is sold at $100 per unit. You are required to determine: (a) Break-even level of sales for each model. (b) The level of sales at which both the models will earn the same profit. (c) The model suitable for different level of demand for the product