Question $5(3$ points$)$

Mosbius Designs, an architectural firm based in the Upper West Side of New York.

Currently, Mosbius Designs is run single$-$handedly by its owner, Ted Mosby. Ted is

considering hiring an assistant, $PJ,$ to help him answer phone calls as business

picks up$.$ For the year ended December $31,2009,$ Mosbius Designs produced $200$

design plans. The following information was provided for $2009$:

If the company hires PJ$,$ Ted believes he can raise the price of each design by $$250$

due to the improved level of customer service. He will also be able to produce $50$

more designs in a year with the extra time. However, the annual fixed costs will

increase by the amount of PJ$\text{'}$s salary, $$55,000.$Based on the above information, which of the following statements is incorrect?

If the company produces $220$ designs per year, Ted will be indifferent between

hiring or not hiring PJ$.$

If the company hires $PJ,$ the company must make $$96,000$ in sales revenue in

order to break$-$even $($use all decimals in your calculation$)$

If the company hires $PJ,$ the operating income for the year will total $$245,000$

At a sales level of $221$ units, Ted will hire PJ$.$

The company's contribution margin per unit in $2009$ was $$1,000.$