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The Fraser Paper Company produces large rolls of white paper weighing 1,000 kilograms for wholesalers for $1,500 each. The wholesalers then cut the paper into standardsized sheets and package it in 2-kilogram packages. These packages are sold to printers for $4 per package. There is no waste in the cutting process. Fraser Paper currently produces 5 million kilograms of paper annually at a fixed cost of $1 million and a variable cost of $0.80 per kilogram. If Fraser bypassed the wholesalers and cut its own paper for sale directly to printers, Fraser would have to add equipment and personnel with an annual xed cost of $650,000. Incremental variable costs would be $0.10 per kilogram. Required: 1-a. Calculate the annual prot from further processing. (Enter your answer in whole dollars, not in millions.) :| M). Should Fraser cut its own paper or continue to sell to wholesalers? 0 Cut the paper themselves 0 Continue to sell to wholesalers