Question 3: (20 Marks) Hardison Company manufactures glass for office buildings in Toronto and Vancouver. As a result of age and wear, a critical machine in the production process has begun to produce quality defects. Hardison is considering replacing the old machine with a new machine, either brand A or brand B. The manufacturer of each machine has provided Hardison these data on the costs of operation of its machine brand at various levels of output: pards RL......... 1. Graph the data for the two brands of machine. 2. Use the high-low method to determine the cost equation for each brand of machine and use the results to calculate the costs of operating each machine if Hardison's output is expected to be 25,000 square yards. 3. Using the high-low equations from requirement 2 , calculate the costs of operating each machine if Hardison's output is expected to be 40,000 square yards and then for expected output of 60,000 square yards. 4. If Hardison's output is expected to be 40,000 square yards, which machine should it purchase? At 25,000 and 60,000 square yards? Is the high-low method useful here? Why or why not? 5. As a cost analyst at Hardison, you have been assigned to complete requires 1 - 4. A production supervisor comes to you to say that the nature of the defect is really very difficult to detect and that most customers will not notice it, so he questions replacing it. He suggests that you modify your calculations to justify keeping the present machine to keep things the way they are and save the company some money. What do you say? 6. Assume that brand A is manufactured in Germany and brand B is manufactured in the USA. As a Canadian -based firm, what considerations are important to Hardison, in addition to those already mentioned in your answer to requirement 1