Sure! Here is a step-by-step solution for the problem shown in your image. --- ## **Step-by-Step Solution** ### **Restate the Problem** You are comparing two machines (VOODOO and MAGICIAN) for production. - **VOODOO**: - Output: 15,625 units/year - Selling price: $400/unit - Total revenue: $6,250,000 - Total cost: $5,250,000 - Net income: Revenue - Cost = $1,000,000 - **MAGICIAN**: - Output: 17,625 units/year - Selling price: $400/unit - Total revenue: $7,050,000 - Total cost: $6,000,000 - Net income: $1,050,000 --- ### **Step 1: Calculate Total Profit for Each Machine** #### **VOODOO** - **Total Revenue** = Units × Price = 15,625 × $400 = $6,250,000 - **Net Profit** = Total Revenue - Total Cost = $6,250,000 - $5,250,000 = $1,000,000 #### **MAGICIAN** - **Total Revenue** = Units × Price = 17,625 × $400 = $7,050,000 - **Net Profit** = Total Revenue - Total Cost = $7,050,000 - $6,000,000 = $1,050,000 --- ### **Step 2: Fill in the Table** | Alternative | Output (units) | Selling Price ($) | Total Revenue ($) | Total Cost ($) | Net Profit ($) | |-----------------------|----------------|-------------------|-------------------|----------------|----------------| | Voodoo | 15,625 | 400 | 6,250,000 | 5,250,000 | 1,000,000 | | Magician | 17,625 | 400 | 7,050,000 | 6,000,000 | 1,050,000 | --- ### **Step 3: Which Machine Should Be Purchased?** Since the **MAGICIAN** machine provides a higher net profit ($1,050,000 vs. $1,000,000), the **MAGICIAN** should be selected. --- ## **Final Answers** 1. **Voodoo**: Net Profit = **$1,000,000** 2. **Magician**: Net Profit = **$1,050,000** 3. **Recommendation**: **Purchase the Magician machine** (higher profit). --- If you need help with the table or any calculations, let me know!