Chester Corporation is considering adding capacity to their Cute product, currently automated to 7.0. Assume:

- They will use the new capacity next year to make and sell 200 additional units (000).

- Each unit of capacity will cost $34.00.

- Cute's price will be unchanged at $34.00.

- Material costs will remain $13.04 next year.

- Labor costs will remain $5.34 on first shift, and $7.91 on second shift.

- Bond interest will remain 10.6% next year.

- Depreciation will be straight line over 15 years.

- SG&A costs can be ignored because they would be the same with or without the new capacity.