A law firm specializes in the issuance of insurance policies covering large commercial real estate projects. The projects fall into two categories: shopping centers, and medical complexes. The typical work involved in each transaction is quite predictable and repetitive. The time requirements (unit loads) for preparing a standard contract of each type are given in the table below. Also listed are the number of professionals of each type and the number of available hours per professional per day (the rest of time is taken by other office activities). Last November, the firm generated 150 orders, 75 of each type. Assume there are 20 working days per month.

Assume the revenues per shopping and medical complex projects are $4,000 and $5,000 per project, respectively. Assume that out of pocket expenses are negligible, so these figures are estimates of the contribution margin per project type. The fixed cost of operating the office is $500,000 per month.

At the current product mix, what is the profit at full capacity?

Group of answer choices

-$68,000 (loss)

-$24,000 (loss)

+$128,000 (profit)

+$40,000 (profit)

At the current product mix, what is the incremental revenue of hiring an extra paralegal?

Group of answer choices

$54,000

$129,600

$75,600

$108,000