Sec-Tech Co. is a software corporation that is evaluating the production of a new hardware product for WID (wireless Intrusion Detection) and governmental agencies are their main customers. The capital cost of the new production plant is expected to be $7,500,000 with annual maintenance costs of 3% of capital. Other annual fixed costs include $185,000 for utilities, administrative salaries are $135,000 per year and insurance is expected to be $78,000. The plant will depreciate over 20 years with a salvage value of $950,000 (use straight line method). Other fixed costs are estimated to be $165,000 per year. Variable costs can be broken down into materials: SmartEdge sensor at $600 per device; a Power Injector at $270 per device and other materials at $978 per device; and direct labor at $23.5 per labor hour with fringe benefits estimated at 22% of the direct labor cost. Sec-Tech has run several forecast scenarios for different selling prices (based on the potential agencies that will become their customers) and the results are presented in the table below:

Average Sales Price ($/device)	Sales (in units)
$1,725.00	10,000
$1,900.00	9,000
$2,005.00	7,500
$2,105.00	6,250
$2,300.00	5,500
$2,700.00	4,750
$2,825.00	3,875

Develop a breakeven capacity analysis for Sec-Techs new device and determine:

Best price, production rate, and profit.

Breakeven production rate with the price determined in part a.

Breakeven price with the production rate determine in part a.

Sensitivity of profits to: i) a 25% increase (and decrease) in variable costs; ii) a 17% increase (and decrease) in the selling price; iii) an 8% increase (and decrease) in the production rate.