Problem 3 (20 points) A small firm intends 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. Annual fixed costs would be $44,000 for A and $20,000 for B; variable costs per unit would be $10 for A and $11 for B; and revenue per unit would be $19. a. Determine each alternative's break-even point in units. (Round your answer to the nearest whole amount. 5 points) b. At what volume of output would the two alternatives yield the same profit (or loss)? (Round your answer to the nearest whole amount. ( 5 points) c. If expected annual demand is 18,000 units, which alternative would yield the higher profit (or the lower loss)? ( 5 points) d. If the firm sell 2,000 units per month, what is payback time in months in both cases? (3points) Which alternative you will choose based on this information? (2 points)