The minimum staffing levels based on total budgeted arrests are as follows:

Annual # of Arrests	Police Officers	Desk Clerks	Supervisors
0-1000	11	6	2
1001,-2000	12	6	2
2,001-3,000	12	7	2
3,001-4000	13	8	3

C City allocates some indirect or overhead costs to each of its police stations. The city charges each station for common services such as the city food service and for administrative services, such as payroll. For the coming year, the C Police Station will have a total budget allocation of $1,400,000. That will be its only revenue. All direct and indirect charges have to be paid from that budgeted amount.

Each police station must pay $100,000 for processing of its payroll. In addition, once arrests are made, the prisoners spend a day or two at the local police station, where the city must feed them. On average, the city food service charges each police station $40 for the meal service for each arrest.

The statiion would like to maximize its number of arrests to reduce the number of criminals on the street. However, more arrests require not only mood food, but also more police officers.

Annual salaries for each class are as follows:

Police Officers: $54,000

Desk Clerks: $59,000

Supervising Officers: $68,500

*Note that this police station cannot process more than 4,000 arrests per year due to size.

Calculate the surplus or deficit at each maximum annual number of arrests staffing levels (1000,2000,3000,4000). Calculate the maximum number of arrests that C Police Station can budget for and still expect to break even for the coming year. (Hint; Once you have found the range of annual arrests that the C Police Station from a surplus to a deficit, focus on what costs are variable between those two levels to find the exact BEQ).

Demonstrate these calculations in a steo-by-step procedure.