Security Alarms (SA) SA was set up 20 years ago as a partnership. It had one shop that sold car alarms. It had an objective to become the market leader within the car alarm retail market. SA is now a large public limited company. It produces and retails a large range of security alarms which are sold in consumer markets. Most of the revenue is from sales of alarms to protect homes. SA's current objective is to maximise shareholder value. SA is developing a new service that it wants to sell to the industrial market. The service will offer the following features. • SA will install a new telephone line to work with the alarm. If the alarm is started then employees at the SA call centre will contact the police. Customers will pay an annual fee to use this new service. Forecast financial information about the new service is shown in Table 2. Table 2: Forecast financial data for the new service Break-even level of customers for first year 3000 Forecast revenue for the first year $2.5m Annual fee to be paid by the customer $500 Calvin, the Marketing Director, is planning to carry out detailed market research in the next two months. After the results of this research and the financial data have been analysed, a decision will be made by the Board of Directors about whether to launch the new service.