You are a consultant for TechWave Enterprises, a company that specializes in producing electronic components for the automotive industry. TechWave is evaluating several processes and equipment purchases to streamline operations and increase profits. The company has provided information on three different scenarios. You are asked to conduct break$-$even and profit analyses to guide their decisions.

Manufacturing Process A

TechWave is considering setting up a new manufacturing process for a custom electronic component.

Fixed costs for setting up the process: $$25,000$

Variable cost per unit produced: $$12$

Selling price per unit: $$40$

What is the number of units TechWave has to produce and sell to break even?

Manufacturing Process B

TechWave is exploring an alternative process for a high$-$volume component used in electric vehicle batteries.

Fixed costs for this process: $$140,000$

Variable cost per unit produced: $$45$

Selling price per unit: $$75$

What is the number of units TechWave has to produce and sell to break even?

Specialized Equipment Purchase

TechWave is contemplating the purchase of a highly specialized piece of equipment to manufacture a critical component. This equipment is expected to produce a unique part with a total worldwide demand of $18,000$ units over its product life.

Initial investment for equipment acquisition and installation: $$320,000$

Variable cost per unit produced: $$20$

Selling price per unit: $$60$

What will be the total profit margin at the end of the product$$s life, assuming TechWave produces and sells all $18,000$ units?