Question One [10 marks]: a) Usually people came from nonbusiness background getting confused when they ssked to differentt between productivity and efficiency. Explain the difference and give an example to ihastrae you answer. b) A manufacturing plant and equipment cost $150 million and are estimated to have a lifetime of 25 years. Straight-line depreciation is to be used. Additional fixed costs per year are $4 million. Variable costs are $1.25 and price is set at $3.25. State annual profit when annual volume, in milion units, is (a) 10, (b) 2.5, (C) 5 and (d) 8. What is the breakeven volume in millions of units for each demand? "Straight-line depreciation: Dividing the total cost of an asset to reflect how much of that coot applies to each period of its useful life (as a fixed cost" estion Two [10 marks]: a) Explain the "Differentiation-better, or at least different" and "Cost leadership-cheaper" as Strategies for Competitive Advantage. Discuss how the AUE implement the first strategy. ) A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of $21 per unit for the first 1,000 units, and $19 per unit for additional units If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best? i. Determine the range for which each alternative is best. Are there any alternatives that are never best? Which