11. Kelly Steen owns a very profitable ice cream stand. Based on the results of a $12,000 marketing research project, Kelly is now considering adding a line of frozen yogurt to her product mix. Kelly expects that the machine necessary to produce the yogurt will cost $180,000, be productive for six years, and have a residual value of $20,000 at the end of the sixth year. However, for income tax purposes, Kelly will depreciate the yogurt machine over eight years to a zero salvage value using the straight-line method. Kelly will incur extra annual fixed costs of $3,000 per year if she acquires this machine. The market research study projected that she could sell 50,000 servings a year at $2.00 per sewing. The annual rent on her stand under the existing noncancelable lease (with six years remaining) is $15,000 per year, with built-in annual increases to cover inflation (expected to be 3.5% annually). Kelly pays herself a $30,000 per year salary and will incur a one-time licensing fee of $2,000 at the time she acquires the machine. Kelly's business has an average income tax rate of 25% and is subject to a marginal tax rate of 30% (both for ordinary income and capital gainsosses), and her required after-tax rate of return (same as "cost of capital\" or "hurdle rate\") is 15%. Required: Using appropriate Time-Value-ofMoney techniques, determine that highest variable cost per unit (cones, cups, spoons, etc.) that Kelly could afford to pay if she acquired this machine