Microchip-X is a company that specializes in producing microchips. It sells these microchips to hightech manufacturers of electronic control devices. The cost of producing a microchip is $30, and 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 now, that 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)? (b) Should Microchip-X start the new product line to utilize its 200,000-unit unused microchip capacity?