QUESTION 1 [25 MARKS] (a) Two machines are being considered for the production of a car spare part. The capital investment associated with the machines is about the same and can be ignored. The important differences between the machines are their production capacities and their reject rates. The data comparison can be found in Table 1. Based on your analysis, determine the best machine that should be selected considering the daily demand for this part is large enough that all defect-free parts can be sold. Given that the price of the defect-free part is RM15.00/part for both machines. (b) A plant operation has fixed costs of RM 2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is RM 40 per unit. i) Based on the information given, calculate total electrical appliances that must be sold before the plant starting to make a profit if the product sells for RM 90 per unit by using breakeven point analysis. [2 Marks] ii) Explain TWO (2) types of fixed costs that the plant should carefully examine to lower its breakeven point. [4 Marks] iii) Estimate the maximum profit can be gained from the company if the plant operate at 100% capacity and the product sells for RM 90 per unit. [3 Marks] iv) Compare annual profit when the plant is operating at 90% of capacity with the plant operation at 100% capacity. Assume that the first 90% of capacity output is sold at RM 90 per unit and that the remaining 10% of production is sold at RM 70 per unit. [6 Marks]