X Ltd. wants to replace one of its old machines. Three alternative machines namely M1, M2 and M3 are under its consideration. The costs associated with these machines are as under: M, M2 M3 Direct...

Extracted text: X Ltd. wants to replace one of its old machines. Three alternative machines namely M1, M2 and M3 are under its consideration. The costs associated with these machines are as under: M, M2 M3 Direct material cost p.u. 50 100 150 Direct labour cost p.u. 40 70 200 Variable overhead p.u. 10 30 50 Fixed cost p.a. 2,50,000 1,50,000 70,000 Compute the cost indifference points for these altematives.