You have to decide which of two machine$-$ Automatic or Manual, to purchase. The information about the machines is the following:

$(15$ marks$)$

Automatic Machine$-$ Fixed costs $($Interest$,$ insurance, maintenance, etc.$)$ total $$100,000.$ The labour and material costs for manufacturing a shaft, are $$10\mathrm{.}2/$Unit and $$15\mathrm{.}6/$Unit$,$ respectively.

Manual Machine$-$ Fixed costs $($Interest$,$ insurance, maintenance, etc$)$ total $$70,000.$ The labour and material costs for manufacturing the shaft, are $$16\mathrm{.}0/$Unit and $$18\mathrm{.}5/$Unit$.$

a$.$ What is the point of indifference $($break$-$even$-$point$)$ for the two machines? $(5$ marks$)$

b$.$ If the demand for the $500mm$ Block is $3800$ units$/$year$,$ which machine should you buy? Why? $(2$ marks$)$

Engineering Services Inc. offers to sell you the block for $$\frac{65\mathrm{.}0}{?}$ Unit for any quantity you require.

c$.$ For what level of demand would you rather buy the block, instead of purchasing any of the above machines and manufacture the shaft in house? $(5$ marks$)$

d$.$ Sum$-$up your choice for alternatives, according to the demand quantity. Replace the $\text{'}?\text{'}$ in the following table with numbers: $(3$ marks$)$

$\backslash$table$[[$Alternative$,$Demand quantity$],[,$From,$-,$To$],[$Subcontract$,0,-,?$