The STI Desk Company manufactures student desks that it sells for $80 per unit. Current cost information is as follows: Variable Costs: Direct Material per Desk - $20 Direct Labour per Desk - $15 Variable Overhead per Desk - $5 Fixed Overhead for the Year - $300,000 The company must choose between two new machines to replace its old machine. Machine A will result in an increase of $150,000 in annual fixed overhead costs and an increase of $2 per unit in variable costs. Machine B will have no effect on current fixed overhead costs but will increase current variable costs by $10 per unit. Expected sales are 18,000 per year. REQUIRED: 1. Calculate the point of indifference. 2. Indicate which machine would be preferred below the point of indifference, and which machine would be preferred above the point of indifference