The operations manager at XYZ manufacturing is analyzing options for a new production line ...

     The operations manager at XYZ manufacturing is analyzing options   for a new production line. He can refurbish some old equipment for $70,000 or   purchase new equipment for $130,000. The variable costs per unit will be   quite different in each case. If he refurbishes, variable cost per unit will   be $7.25; if he purchases new equipment, variable cost per unit will be   $4.75.    The product will sell for $10 per unit.   a. Create a   profit model for each option assuming that all units produced will be sold.   b. Using the   Excel Goal Seek function, find the break-even volume for each option   c. Graph   Total Profit vs Volume for both options on one graph (show volume from 0 to   50,000)      d. According   to the graph at what volumes (approx.) would the Refurbish option be   preferred?