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Section ABC Company has two machines, each machine working separately, but theyproduce the same parts. The variable and fixed costs of those two machines aresummarized
Section ABC Company has two machines, each machine working separately, but theyproduce the same parts. The variable and fixed costs of those two machines aresummarized in the following table. Machine 1 (M1) cycle time is 1 part/ 3hours, and Machine 2 (M2) cycle time is 1 part/1 hour. The manager wants to invest in a new machine (M3), the new machine'sfixed cost is $15,000, the variable cost is $400/10 parts, and it needs two operators its cycle time is one part/1 hour. If he decided to buy the new machine, thepart price would increase by 30%. Cost Fixed Cost Variable Cost (per 10 parts) Number of operators (50/hour) Part Price M M2 $20,000 $10,000 S500 S300 2 1 $500 1 Contribution margin per unit before buying machine 3 * (2 Points) 2 Contribution margin per unit after buying machine 3 * (2 Points) Enter your answer 3 3 Breakeven point unit before buying machine 3* (2 points) Enter your answer Breakeven point unit after buying machine 3* (2 Points) Enter your answer 5 5 How many parts does he need to sell to get a $10,000 operating income before buying machine 3* (2 points) Enter your answer 6 How many parts does he need to sell to get a $10,000 operating income after buying machine 3* (2 Points) Enter your answer 7 Based on your answer, which option should he choose? * (2 Points) Enter your
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