A plant has been built at a cost of $6,000,000 to produce 6,000,000 gallons per year of a product having an expected selling price of $1.30 per gallon. 20% return on investment before taxes is expected. Annual fixed expenses are estimated to be $600,000 per year and variable (operating) expenses will be $0.60 per gallon. Another class of expenses (regulated) will run $2,400,000 per year at full capacity, $720,000 at zero production and varies linearly with production. i. At what production level will total cost break even with sales? ii. If the $1.30 per gallon price must be maintaines, at what production level must operations be discontinued? iii. How much must the sales price be raised to realize the desired 20% return on investment before taxes if production remains at the break-even level found in "i"? iv. At what production level will the 20% annual return be achieved employing a sales price of $1.50 per gallon? V. What will be the per cent return on investment at the rae found in "iv" if the price is held at the recommended $1.30 per gallon level? vi. What will be the "payout period" for operation at full capacity? Solve this problem analytically and graphically.