4. Leaton Co introduced a new product, LD to its range last year. The machine used to mould each item is a bottleneck in the production process meaning that a maximum of 7000 units per annum can be manufactured. The LD product has been a huge success in the market place and as a result, all items manufactured are sold. The marketing department has prepared the following demand forecast for future years as a result of feedback from customers. Year 1 2 3 4 Demand (units) 8000 10000 12000 6000 The directors are now considering investing in a second machine that will allow the company to satisfy the excess demand. The following information relating to this investment proposal has now been prepared: Initial investment $30000 Maximum additional output 7000 units Current selling price $80 per unit Variable operating costs $36 per unit Fixed operating costs $18000 per year