In a normal year, Wilson Industries has $$24,000,000$ of fixed manufacturing costs and produces $60,000$ units. In the current year, demand for its product has decreased, and it appears that the company will be able to sell only $50,000$ units. Senior managers are concerned, in part because their bonuses are tied to reported profit. In light of this, they are considering keeping production at $60,000$ units.

Explain why increasing production beyond the quantity needed for current sales will increase profit, and calculate the impact of producing $10,000$extra$$ units. Is the managers$$ proposed action in the best interest of shareholders? Why or why not?