Melissa Vassar has decided to open a printing shop. She has secured two contracts. One is a $5-$year contract to print a popular regional magazine. This contract calls for $5,000$ copies each month. The second contract is a $3-$year agreement to print tourist brochures for the state. The state tourist office requires $10,000$ brochures per month.

Melissa has rented a building for $$1,400$ per month. Her printing equipment was purchased for $$40,000$ and has a life expectancy of $20,000$ hours with no salvage value. Depreciation is assigned to a period based on the hours of usage. Melissa has scheduled the delivery of the products so that two production runs are needed. In the first run, the equipment is prepared for the magazine printing. In the second run, the equipment is reconfigured for brochure printing. It takes twice as long to configure the equipment for the magazine setup as it does for the brochure setup. The total setup costs per month are $$600.$

Insurance costs for the building and equipment are $$140$ per month. Power to operate the printing equipment is strongly related to machine usage. The printing equipment causes virtually all the power costs. Power costs will run $$350$ per month. Printing materials will cost $$0\mathrm{.}40$ per copy for the magazine and $$0\mathrm{.}08$ per copy for the brochure. Melissa will hire workers to run the presses as needed $($part$-$time workers are easy to hire$).$ She