1. Assume sales and demand are 1,500 units, how much will the company make on the sale of the next unit (1,501^st)? Discuss which costs will change if the company makes and sells one more unit. Will the company make a profit on the unit if they sell at a price below your answer in 2? Please discuss your calculations and reference to Figure 1.

Figure 1:

	Total at 2,000 Units	Per Unit
Sales	$600,000	$300
Variable Costs	321,000	160.5
Contribution Margin	279,000	139.5
Fixed Costs	182,000	91
Operating Income	97,000	48.5