Benson, Inc. manufactures and sells camping tents. They are considering the production of an additional type of tent, the

Yukon, which will be sold for $$250.$ To produce the Yukon and its carrying case, the following materials are needed:

$1.475$ square feet of nylon material

$2.40$ feet of zippers

$3.85$ feet of titanium$-$based rods

Currently, Benson has contracts with its suppliers to purchase nylon material for $$0\mathrm{.}20/$ square foot, zippers for $$0\mathrm{.}15/$ foot,

and titanium mix for $$3\mathrm{.}50/$ pound. Benson adds water to the titanium mix and runs it through a machine to produce the

rods for the tent. On average, it takes $2\mathrm{.}5$ pounds of the titanium mix to produce $10$ feet of rods. Benson would need to

purchase an additional machine, which can be purchased for $$300,000$ and would have the capacity to manufacture $800,000$

feet of rods per year. It is estimated to have a useful life of $20$ years.

As part of the manufacturing process, Benson will hire four full$-$time line workers $($one for cutting, one for sewing, one for rod

assembly, and one for painting$).$ Each of the line workers are paid hourly at a rate of $$12/$ hour. Benson believes he can get

by with four line workers as long as production of the Yukon is less than $7,500$ tents $/$ year. At that point, he will need to add

two full$-$time line workers. Benson is open $2,100$ hours per year.

Additionally, Benson plans to hire a production supervisor and a quality control supervisor as part of the manufacturing

process. They will be paid on salary at $$55,000$ and $$62,000,$ respectively. For the remainder of the other manufacturing

costs, an Excel regression was calculated using number of tents sold as the independent variable. Here are the results:

$1.$ Insurance on the facility $=$ R$2=0\mathrm{.}95,$ y$-$int $=7,500,$ slope $=1\mathrm{.}2$

$2.$ Utilities on the facility $=$ R$2=0\mathrm{.}72,$ y$-$int $=3,850,$ slope $=6\mathrm{.}75$

Assume there is a flat income tax of $30\%.$