Two machines, A or B, can be used to make a wireless mouse. The price per mouse will be $25 regardless of which machine is used. The fixed and variable costs associated with the two machines are shown below:

All Figures in USD	Machine A	Machine B
Fixed Costs	100,000	400,000
Variable Cost/Unit	15.25	9

Question:

At the expected sales level of 75,000 units, how much higher or lower will the firm's expected EBIT be if it uses machine B instead of machine A? and If the expected sales fall to 25,000 units, which machine should be used? Why?