SHOW WORK

2. STEM Inc. wants to expand their facility. They are considering proposals from two builders named Builder A" and "Builder B. STEM's annual fixed costs for facilities from Builder A and Builder B are respectively $35,000 and $50,000. The variable cost for the product made in the facility from Builder A is $16.00 per unit and for the facility by Builder B, the variable cost is $10.00 per unit. The revenue generated by the product produced in the facility is $20 per unit, and the estimated annual output from the additional facility is 6000 units for the facility by each builder. (a) On the basis of total cost, which builder should be preferred? Show your workings by determining the total cost for each builder. (b) Determine the breakeven quantity for facility by Builder A. (c) Determine the breakeven quantity for facility by Builder B. State or explain how results in (2b) and (2c) support the correct answer in (2a). (d) Show all workings in all questions in order to obtain credit for each