Teller Co. sold 20900 units of its only product and incurred a$71860 loss (ignor

Teller Co. sold 20900 units of its only product and incurred a$71860 loss (ignoring taxes) for the current year as shown here.During a planning session for year 2012s activities theproduction manager notes that variable costs can be reduced 40% byinstalling a machine that automates several operations. To obtainthese savings the company must increase its annual fixed costs by$159000. The maximum output capacity of the company is 40000units per year.