Eastern Broom Company manufactures, amongst other broom products, corn brooms. To make a corn broom, a worker begins the manufacturing process by selecting a bundle of straw, which is prepackaged by the supplier, and a broom handle. The worker puts both items into a machine and presses a button. The machine then binds the bundle of straw and the broom handle to complete production. A production worker, who is paid $40 per hour, can make 20 corn brooms each hour. Total production is limited by the number of labour hours available, which is 1,500. Eastern Broom Company sells its corn brooms for $28 each and is currently operating at capacity. Annual fixed costs assigned to the corn broom operation is $540,000.