Joe Jenkins, owner of Jenkins Manufacturing, is considering whether to produce a new product. He has considered the operations requirements for the product as well as the market potential. Joe estimates the fixed costs per year to be $40,000 and variable costs for each unit produced to be $50.a. If Joe sells the product at a price of $70, how many units of product does he have to sell to break even? Use both the algebraic and graphical approaches. b. If Joe sells 3000 units at the product price of $70, what will be his contribution to profit?2. Joe Jenkins, owner of Jenkins Manufacturing, has decided to produce the new product discussed in Problem 1. The product can be produced with the current equipment in place. However, Joe is considering the purchase of new equipment that would produce the product more efficiently. Joe’s fixed cost would be raised to $60,000 per year, but the variable cost would be reduced to $25 per unit. Joe still plans to sell the product at $70 per unit. a. Should Joe produce the new product with the new or current equipment described in Problem 1?b. Specify the volume of demand for which you would choose each process