Composite Printing Company currently leases its only copy machine for $1,700 a month. The company is considering replacing this leasing agreement with a new contract that is entirely commission based. Under the new agreement, Composite would pay a commission for its printing at a rate of $25 for every 500 pages printed. The company currently charges $0.30 per page to its customers. The paper used in printing costs the company $0.02 per page and other variable costs, including hourly labor, amount to $0.12 per page. Read the requirements. y under the new commission-based agreement? breakeven point under the current leasing agreement. (Enter a i Requirements 1. 2. What is the company's breakeven point under the current leasing agreement? What is it under the new commission-based agreement? For what range of sales levels will Composite prefer (a) the fixed lease agreement and (b) the commission agreement? Composite estimates that the company is equally likely to sell 19,000, 29,000, 39,000, 49,000, or 59,000 pages of print. Using information from the original problem, prepare a table that shows the expected profit at each sales level under the fixed leasing agreement and under the commission-based agreement. What is the expected value of each agreement? Which agreement should Composite choose? (b) the commission agreement? It calculate the indifference point. alternative 2. Print Done The indifference point is at units. Corporate would prefer the fixed lease agreement at (4) The commission based agreement would be preferred at (5) - Requirement 3. Corporate estimates that the company is equally likely to sell 20,000, 30,000, 40,000, 50,000, or 60,000 pages of print. Using information from the original problem, prepare a table that shows the expected profit at each sales level under the fixed leasing agreement and under the commission-based agreement. What is the expected value of each agreement? Which agreement should Corporate choose? Begin with the fixed leasing agreement (Use parentheses or a minus sign for losses.) Fixed leasing agreement Expected Sales level Profit/(Loss) Profit/(Loss) 20,000 30,000 40,000 50,000 60,000 Total expected profit/(loss) Next, calculate the expected profit at each sales level under the commission based agreement. Commission-based agreement Expected Sales level Profit/(Loss) Profit/(Loss) 20,000 30,000 40,000 50,000 60,000 Total expected profit/(loss) Corporate should choose (6) - agreement