Bread Maker Opportunity EEC has obtained information on the BakersDream, a high-end commercial-grade bread maker. The BakersDream would replace the current equipment at EEC, requiring no additional counter space, and using less electricity. It would increase capacity by 500 hours. For the purpose of your analysis, assume these hours would be used to produce the sandwich option that was NOT PICKED in your previous analysis. The BakersDream costs $200,000. Installation and training are an additional $10,000. EEC can sell its old equipment for $4,000. Annual costs are expected to be as follows: Maintenance (1) $2,500 Depreciation (2) 8,200 Electrical (3) 4,000 Note 1: The BakersDream requires annual maintenance to be performed by the manufacturer or the warranty is void. Note 2: The BakersDream will be depreciated on a straight-line basis over 25 years, with no salvage value. Note 3: Electricity costs for the BakersDream are expected to be $4,000 per year. Electricity for the old equipment was $2,500 per year. EEC's rate of return is 6% for evaluation of projects. EEC's corporate tax rate is 25%. The present value of the tax shield for the BakersDream is $28,000.Sandwich Information Existing Proposed Cubana Chacarero Pambazo Chile's Mediterranean Delight Beef Chorizo Chivito Light Labour per unit (hours) 0.08 0.06 0.05 0.07 0.05 Estimated demand (units) 30,000 35,000 42,000 15,000 15,000 Total labour hours 2,400 2, 100 2, 100 1,050 750 Sales price $9.50 $9.55 $9.00 $10.00 $8.00 Direct materials (4.35) (4.55) (5.00) (4.85) (3.40) Direct labour (1) (0.96) (0.72) (0.60) (0.84) (0.60) Fixed overhead (2) (3.43) (3.43) (3.43) 3.43) (3.43) Profit $0.76 $0.85 $(0.03) $0.88 $0.57 Note 1: Direct labour is based on a rate of $12 per hour. Note 2: Fixed overhead is applied on a per-unit basis of $3.43 per unit. Labour hours available Currently, there are 8,000 labour hours available annually for the production of sandwiches. Current production uses 7,500 hours. New sandwiches Inspired by a recent vacation to southern Greece, Elaine is considering a new sandwich, Mediterranean Light, which is a vegetarian style sandwich. It would feature imported vegetables. The sandwich can easily be converted to a vegan option. In addition, Elaine's husband, Mauricio, has developed a new sandwich, Chile's Chivito, loaded with plenty of beef, ham, bacon, and melted mozzarella. The ingredients would be sourced from local providers