JC Inc. produces and sells marbles. JC produces and sells 40,000 units at $5 per marble and has capacity for 50,000 units. Costs are as follows:

Variable production costs: $2 per unit produced

Variable marketing costs: $0.50 per unit sold

Fixed production costs: $30,000

Fixed marketing costs: $15,000

Fixed administrative costs: $15,000

1.JC is considering increasing sales by paying a sales commission for each unit sold. To increase sales by 10,000 units, what is the maximum commission per unit JC should be willing to pay?

2.JC is also considering increasing sales with an advertising campaign (instead of sales commissions). What is the most JC should spend on advertising to increase sales by 10,000 units?

3.Assume there are no changes in commissions or advertising. JC has received an order for 20,000 marbles at a price of $4 per marble. If JC accepts the offer, by how much will profits change?