There will be no increase in fixed costs. All administrative costs are considered fixed. Sales commissions equal 5% of sales on the EC and it is anticipated that this commission rate would apply to the SEC as well. The new machine is classified as a class 8 asset for tax purposes. The CCRA requires that assets in this class be written off using the declining balance method at a CCA rate of 20%. Company management is uncertain, however, as to the demand for the SEC. They have forecast the demand as follows