controller's ethical responsibilities. You just started a summer internship with the successful management consulting firm of Brooks & Angelou, which specializes in social and environmental issues. Your first day on the job was a busy one, as the following problems were presented to you. Required: Supply the requested comments in each of the following independent situations. 1. Front Yard Printing, has established 500 convenience copying centers in underserved neighborhoods throughout the southeast. In order to increase its impact, the company is considering three new mod- els of laser copiers for use in producing high-volume, high-resolution copies. These high-resolution copies would be added to the growing list of products offered in Front Yard's copy shops. The sell- ing price to the customer for each high-resolution copy would be the same, no matter which machine is installed in the shop. The three models of laser copiers under consideration are 1024S, a small- volume model; 1024M, a medium-volume model; and 1024G, a large-volume model. The annual rental costs and the operating costs vary with the size of each machine. The machine capacities and costs are as follows: Annual capacity (copies) Costs: Annual machine rental Direct material and direct labor Variable overhead costs Copier Model 1024S 1024M 1024G 100,000 350,000 800,000 $ 8,000 $11,000 $20,000 .02 .02 .02 .12 .07 .03 a. Calculate the volume level (number of copies) at which Front Yard Printing would be indif- ferent to acquiring either the small-volume model laser copier, 1024S, or the medium-volume model laser copier, 1024M. b. The management of Front Yard Printing is able to estimate the number of copies to be sold at each copy center. Present a decision rule that would enable the organization to select the most profitable copier without having to make a separate cost calculation for each establishment. (Hint: To specify a decision rule, determine the volume at which Front Yard Printing would be indifferent between the small and medium copiers. Then determine the volume at which it would be indifferent between the medium and large copiers.) 2. C. Bird Enterprises (CBE) is evaluating a special order it has received for a silicon-based compo- case adop