please answer requirement 3 and show the steps. thank you

The Dalton Company produces and sells 5,700 modular computer desks per year at a selling price of $500 each. Its current production equipment, purchased for $1,600,000 and with a five-year useful life, is only two years old. It has a terminal disposal value of $0 and is depreciated on a straight-line basis. The equipment has a current disposal price of $650,000. However, the emergence of a new moulding technology has led Dalton to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives: (Click icon to view the data.) X Required Data table Requirement 1. Should Dalton upgrade its production line or replace it? Show your calculations. (Only complete the necessar Over 3 years Upgrade Replace Difference in favour of Replace S 2.223,000 S 1.111,500 $ 1,111,500 (650,000) 650.000 Upgrade Replace One-time equipment costs $ 2,800,000 $ 4,000,000 Variable manufacturing cost per desk S 130 $ 65 Remaining useful life of equipment (years) 3 3 Terminal disposal value of equipment S 0 $ $ All equipment costs will continue to be depreciated on a straight-line basis. For simplicity ignore income taxes and the time value of money, Cash operating costs Current disposal price One time capital costs, written off periodically as depreciation (1,200,000) 2,800,000 4,000,000 S 5,023,000 S 4,461,500 561,500 Total relevant costs Print Done Dalton Company should replace the equipment. When comparing relevant costs between the choices, replacing the equipm Requirement 2. Now, suppose the one-time equipment cost to replace the production equipment is somewhat negotiable. Alle to replace the old equipment rather than upgrade it? Dalton would be willing to pay up to S 4561500 Requirement 3. Assume that the capital expenditures to replace and upgrade the production equipment are as given in the original exercise but that the production and sales quantity is not known. For what production and sales quantity would Dalton (a) upgrade the equipment or (b) replace the equipment? (Round your answer to the nearest whole number.) Dalton would want to upgrade if the production and sales quantity was less than units for the three years