Microchip-X is a company that specializes in producing microchips. It sells these microchips to high-tech manufacturers of electronic control devices. The cost of producing a microchip is\($30\), Microchip-X can sell the chips to other high-tech manufacturers for\($55\). Microchip-X can produce, at most, 1 million microchips each year.

Suppose nowthat the workers' unions of many of the key high-tech manufacturers of electronic control devices (Microchip-X's customers) go on strike. Under these new market conditions, Microchip-X receives outside orders of only 800,000 units from the high-tech manufacturers (at the same price of\($55\)), and so it has some idle capacity.

As a result, the company is considering producing a certain electronic control device by itself. Producing each control device involves putting in two microchips plus an additional\($50\)in labor costs. To open this new product line, Microchip-X must rent a new plant, which costs\($2\)million each year. It also needs to borrow\($20\)million as working capital (the annual interest rate is 5%). The company can sell each control device for\($150\).

(a) If Microchip-X opens the new product line, what are its profits from producing each control device (if we only take into account variable costs)?