CompuTech, Inc., a manufacturer of products using the latest microprocessor technology, has appointed you the manager of its Micro Technology Division. Your division has $800000 in assets and manufactures a special chip assembly. On January 2 of the current year, you invested $1 million in automated equipment for chip assembly. At that time, your expected income statement was as follows:

Sales revenue Operating costs: Unit level (variable) Facility level (fixed) Depreciation: New equipment Other $3200000 $400000 $1500000 $300000 $250000 Division operating profit $750000