2. (20 points) Genetic Technology is a small firm in Vermont. The manager of the company is planning to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B have been identified, and the associated costs and revenues have been estimated and reported in the following table. Annual fixed costs would be $40,000 for machine A and $30,000 for machine B. Variable costs per unit would be $10 for machine A and $11 for machine B. The revenue per unit would be $15. In equation form TCA = 40,000 + 10 X and TCE = 30,000 + 11 X Annual Fixed Costs Average variable cost Machine A Machine B $40,000 $30,000 $10 $11 a Determine the break-even quantity and break-even sales for machines A and machine B b. At what volume of output would the two machines yield the same profit? c. If the expected annual demand is 12,000 units, which alternative would yield the highest total profit