Question Completion Status: QUESTION 5 The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows. Product 1 Product 2 Sales Price $250 each $320 each Var Mfg $50 each $55 each Var G&A $40 each $65 each Fixed Mfg $50, 000 $70, 000 Fixed G&A $90, 000 $120, 000 Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. Currently the Dubs division has a total manufacturing capacity of 4,000 wheels per year which is limited by the availability of skilled mechanics. Dubs believes the maximum external demand for either product separately is 2,700 units. Dubs is considering adding two new mechanics. These employees would not change variable costs per unit but would add a total of $178, 000 in annual fixed manufacturing costs. Each mechanic is expected to increase capacity by 400 wheels per year. Due to contractual obligations Dubs currently manufactures 1, 800 units of Pl and uses its remaining capacity to produce 2,200 units of P2. Dubs would allocate any additional capacity to maximize total profits, subject to demand limitations and its current contracts. Determine Dub's anticipated annual total profit if it decides to hire the mechanics. Round to the Nearest $1.00