x=04

Q4. 120 marks] For this question, X is the first two digits (from the right) of your student ID. Two machines are under consideration for a new production line. Machine A costs $50,000 and is expected to have a salvage value of $6,500 at the end of its 5 years useful life. It will have a fixed cost of $16,000 per year and a variable cost of $55 per unit. On the other hand, machine B costs $55,000 and is expected to have a salvage value of $7,000 at the end of its 7 years useful life. It will have a fixed cost of $14,500 per year and a variable cost of $(X+56) per unit. Determine the quantity that must be produced and sold every year for the two machines to break even at an interest rate of 3%. List any assumptions needed to solve the