At what volume of demand (i.e., number of loads) should Gemstone purchase System 1? System 2? 1 answer below »

Gemstone Quarry is trying to decide whether to invest in a new material-handling system. The current system (which is old and completely paid for) has an annual maintenance cost of $10,000 and costs approximately $25 to transport each load of material. The two new systems that are being considered vary both in sophistication and cost. System 1 has a fixed cost of $40,000 and a cost per load estimated at $10. System 2 has a fixed cost of $100,000 but a per-load cost of $5. At what volume of demand (i.e., number of loads) should Gemstone purchase System 1? System 2?