Question 2 Oak Harbor Woodworks is considering a new labor-saving machine that rents for $15,000 per year. The machine will be used on the company's butcher block production line. Data concerning the company's annual sales and costs of butcher blocks with and without the new machine are shown below: Current situation Situation with the new machine Units produced and sold... .5,000 6,000 Selling price per unit...... $40 $39 Direct materials cost per unit. $14 $13 Direct labor cost per unit. $8 $5 Variable overhead cost per unit $2 $2 Fixed expenses, other... $62,000 $62,000 Fixed expenses, rental of new machine $15,000 Requirements: Given the data above, what do you think your decision should be? Should you prefer the current situation or should you prefer new machine? Note: 1. You must NOT go outside for data collection. You have do the assignment based on your judgement and using the concept from books, slides, google, internet etc. 2. Assignment can be done in MS Excel/MS Word/ hand written 3. In case of hand written, you have to make it a PDF file to upload. 4. No word limit