Problem Solving Question I (30 Points) David's company is considering its capacity plan to set up the facility in its workshop to produce a new product, electronic clock. After doing the research, David has three options to choose. Option A, buy a new machine with a cost of $14,000. The advantage of buying a new machine is that the variable cost of producing an electronic clock is lower ( $6 per clock). David can sell a clock at $15 with this option. Option B, buy a used machine with a cost of $6,000. The variable is $8 per clock, higher than Option A. David can sell a clock at $14 with this option. Option C, buy a new but downgraded machine with a cost of $9,000. The variable is $6 per clock. David can sell a clock at $14 as well with this option. 1) Discuss how does the production affect David's choice and graphically shows this impact. 2) Provide you suggestion to David on which option and under which condition should be chosen