Monarch Appliances developed a product for which the R&D expenses were $1,000,000. Monarch will incur an annual fixed cost of $500,000 to produce this product. The unit variable costs will be $4 if the sales volume is less than or equal to 20,000. If the sales is greater than 20,000, the unit variable cost for additional units will be $5. For example, the variable cost for 18,000 units is 18000*$4 while for 21,000 units it is 20000*$4 + (21000-20000)*$5. The unit sales price of this product is $20. Monarch uses a discount rate of 10% per year. Assume that the annual profits are received at the end of the year. a. If the annual sales volume is 50,000, how long will it take for them to break even, i.e. recover the R&D expenses? b. If they would like to break-even in 3 years, what is the required annual sales volume? (Hint: You could use either NPER or PV.)