You are the owner of a factory that supplies chairs and tables to schools in Denver. You sell each chair for $1.76 and each table for $4.40 based on the following calculation:

You have received an offer from a school in Colorado Springs to supply an additional 10,000 chairs and 2,000 tables for the price of $1.5 and $3.5 respectively. Your financial advisor advises you not to take up the offer because the price does not even cover the cost of production.
Is the financial advisor correct?

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Chair Table department department No. of units 100,000 20,000 Cost of material 80,000 35,000 Cost of Labor 40,000 20,000 Fixed cost 40,000 25,000 Total cost 160,000 80,000 Cost per unit 1.60 4.00 Plus 10% profit 1.76 4.40