Hospital Supply, Inc. produced hydraulic hoists that were used by hospitals to move bedridden patients. The cost per unit of manufacturing and marketing a hydraulic hoist at the company's normal volume of 3,000 units per month are shown below.' Unit manufacturing costs:/ Variable materials Variable labor Variable overhead $550 8251 420 $ 1,795 $ 1,980,000 Fixed manufacturing overhead Unit marketing costs: Variable (at time of sale) Fixed marketing costs $ 2751 $2,310,000 The following questions refer to the data given above. Unless otherwise stated, assume there is no connection between the situations described in the questions; treat each independently. Unless otherwise stated, assume a regular selling price of $4,350 per unit. Ignore income taxes and other costs not mentioned. Optimal use of manufacturing space: A proposal is received from an outside contractor who will make 1,000 hydraulic hoist units per month and ship them directly to Hospital Supply's customers as orders are received from Hospital Supply's sales force. Variable marketing costs would be cut by 20% (to $220 per unit) for these 1,000 units produced by the contractor. The idle facilities would be used to produce 800 modified hydraulic hoists per month for use in hospital operating rooms. These modified hoists could be sold for $4,950 each while the variable manufacturing costs would be $3,025 per unit. Variable marketing costs would be $550 per unit. Fixed marketing and manufacturing costs would be unchanged whether the original 3,000 regular hoists were manufactured or the mix of 2,000 regular hoists plus 800 modified hoists was produced. Should the proposal be accepted for a price of $2,475 (plus variable marketing costs) per unit to the contractor? What would be the impact on income if the proposal is accepted