Falkirk Ltd. produces a single product, the Thingme. Last year it sold 100,000 units with the following results: Sales $2,500,000 Variable Costs $1,000,000 Fixed costs $ 400,000 Operating income before taxes. $ 1,100,000 In an effort to improve the quality of its product, Falkirk is considering replacing one of its component parts, which costs $2 per unit, with an improved component which will cost $3 per unit. It will also have to purchase a new piece of equipment in order to change their production process. It will cost $120,000 and will have an expected useful life of 5 years. At the end of the 5 years, it will be obsolete and will be sold for $20,000. The company depreciates all of its assets using the straight-line method. The corporate tax rate is 30%.asap