Justin Brass specializes in marine pumps. Justin’s monthly contribution and profit are $125,000 and $50,000 at its current monthly volume of 2,500 pumps. At this volume, Justin’s firm fully uses its available capacity of 10,000 labor hours.
Justin’s management has been trying to branch out into making valves. A buyer has contacted Justin for an order of 500 valves. Each valve will consume 3 labor hours and yield a contribution of $30 per unit.

Required:
a. By how much will Justin’s monthly profit change if the valve order is accepted?
b. Determine the price per valve at which Justin’s monthly profit is the same whether it accepts or rejects the valve order.
c. Discuss two qualitative considerations that might affect Justin’s decision.