PROBLEM I (Break-even Analysis ): A company can sell a product for $470.00 per unit. It has two options for making the product. Option A: A standard machine costs $167,400.00. Further, the variable cost is $160.00 per unit on the standard machine, Option B: An advanced machine costs $322,000.00. The variable cost is $120.00 per unit on the advanced machine. (Note that each option represents a straight line equation on the graph.) Answer the following questions. (1) What is the break-even point for option A? (a) 540 (b) 690 (c) 920 (d) 1290 (e) none of the above (2) What is the break-even point for option B? (a) 540 (b) 690 (c)920(d)1290 (e) none of the above (3) At what volume will the profit be same for both options? (a) 3142 (b) 3865 (c) 3294 (d) 3082 (e) none of the above (4) What must be the volume of sales to make a profit of $51,150 under option A ? (a) 740 (b) 720 (c) 770 (d) 705 (e) none of the above (5) What must be the volume of sales to make a profit of $50,400 under option B ? (a) 1042 (b) 1068 (c) 1064 (d) 1072 (e) none of the above (6) If the company can sell only 760 units of the product, what is the maximum profit the company can make? (a) 56,000 (b) 65,060 (c)68,200(d)67,400 (e) none of the above (7) If the company can sell only 1800 units of the product, what is the maximum profit the company can make? (a) $308,000 (b) $366,400 (c) $346,800 (d) $390,600 (e) none of the above