Indifference Analysis under Uncertainty (L.O.2): Granduke Company has a patent on a new device that sells at a price of $75 per unit. They can build their own manufacturing facilities and incur variable costs of $30 per unit and fixed costs of $1.8 million per year. On the other hand, they could hire a subcontractor who would meet the demand at a cost of $60 per unit without any fixed costs. The problem is that demand for the device is uncertain.

Required: Ignoring risk, at what demand level would management be indifferent between the alternatives?