A manufacturing plant and equipment cost $150 million and are estimated to have a lifetime of 25 years. Straight-line depreciation is to be used. Additional fixed costs per year are $4 million. Variable costs are $1.25 and price is set at $3.25. State annual profit when annual volume, in million units, is

(a) 10,

(b) 2.5,

(c) 5 and

(d) 8.

What is the breakeven volume in millions of units for each level of demand?