A service center has installed a new computer system with local area network-

ing at a cost of $1.6 million. The system is expected to serve for 8 years, and

straight-line depreciation is acceptable. There are additional fixed costs of

$300,000 per year. This service repair center charges each customer a flat fee

of $30. The variable costs are $20. What will profit be if the annual volume is

(a) 50,000 units? (b) 25,000 units? and (c) 75,000 units? What is the break-

even point?