Allied Inc. is considering the purchase of a new piece of equipment. Relevant data are shown below. 
a.Using this information, determine the breakeven volume.
b.If the anticipated demand for the product is 5,000 units, should Allied purchase the new equipment?
Definitions:
Time Paper
A financial document or instrument that is payable at a future specified date, not upon demand or presentation.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on-demand or at a set time, with the payee’s name either mentioned or left blank.
Separate Agreement
An individual contract related to, but distinct from, another contract, often detailing specific aspects or obligations not covered in the primary agreement.
Incomplete Instrument
A legal document or financial instrument that is missing essential information or signatures.
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