Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems are as follows: Model no. 6754: Variable costs, $16.00 per unit Annual fixed costs, $985,600 Model no. 4399: Variable costs, $12.80 per unit Annual fixed costs, $1,113,600 Corrigan's selling price is $64 per unit for the universal gismo, which is subject to a 5 percent sales commission. (In the following requirements, ignore income taxes.) Required: When answering the following questions, you have to show the detailed calcuations. a. How many units must the company sell to break even if Model 6754 is selected? (4 marks) b. Which of the two systems would be more profitable if sales and production are expected to average 46,000 units per year? (8 marks) c. At what volume level will management be indifferent between the acquisition of Model 6754 and Model 4399? (6 marks) d. Assume Model 4399 requires the purchase of additional equipment that is not reflected in the preceding figures. The equipment will cost $450,000 and will be depreciated over a five-year life by the straight-line method without residue value. How many units must Corrigan sell to earn $956,400 of income if Model 4399 is selected? (7 marks)