2. Suppose that, at a new production level of 30,000, the fixed cost increases to $4.5 million, what are the incremental and marginal costs for the additional 10,000 units? 

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Table 5.3 Cost Comparison in Incremental Cost Analysis TC for in-house Personnel services Office rental evaluation team ($) TC of contracting out Incremental cost (1) (2) ($) (2)-(1) 220,000 0 -220,000 50,000 50,000 0 Office equipment 12,000 12,000 0 Transportation 10,000 -10,000 Office supplies 13,000 -13,000 Printing and binding 40,000 -40,000 Consulting fee 0 310,000 310,000 Total 345,000 372,000 27,000