Cos Cob Systems, Inc., makes heat-seeking missiles. It has recently been offered a government contract from which it may realize a profit. The contract purchase price is $130,000 per missile, but the number of units to be purchased has not yet been decided. The company's fixed costs are budgeted at $4,035,000, and variable costs are $68,500 per unit. 1. Compute the number of units the company should agree to make at the stated contract price to earn a profit of $1,500,000. units 2. Using a lighter material, the variable unit cost can be reduced by $1,730, but total fixed overhead will increase by $29,240. How many units must be produced to make $1,500,000 in profit? units 3. Given the figures in 2, how many additional units must be produced to increase profit by $1,264,600? CVP Analysis in a Service Business Westport Inspection Service specializes in inspecting cars that have been returned to automobile leasing companies at the end of their leases. Westport's charge for each inspection is $60; its average cost per inspection is $15. The owner wants to expand his business by hiring another employee and purchasing an automobile. The fixed costs of the new employee and automobile would be $3,000 per month. How many inspections per month would the new employee have to perform to earn a profit of $1,500? inspections?