Harcourt Manufacturing (HM) has the capacity to produce 10,200 fax machines per year. HM currently produces and sells 7,200 units per year. HM currently leases its excess capacity for a rental fee of $16,000. The fax machines normally sell for $120 each. Modem Products has offered to buy 2,200 fax machines from HM for $70 each. Unit-level costs associated with manufacturing the fax machines are $19 each for direct labor and $44 each for direct materials. Product-level and facility-level costs are $52,000 and $67,000, respectively. Based on this information (ignore qualitative characteristics)