PA1. LO 10.1 Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $55,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25 and the cost per unit is $7.85. Using the information provided, calculate the annual financial impact of hiring the extra worker. Direct materials $3.50 Direct labor 1.10 Variable overhead 0.45 Fixed overhead (primarily depreciation of equipment) 2.80 Total $7.85 Solution Selling price per unit Less variable costs per unit: Direct material Direct labor Variable overhead Contribution margin per unit Differential units Differential profit before cost of additional worker Cost of additional worker Profit increase after hiring an additional worker