Required compensation
Widgets Sold	Disutility of effort (total, not marginal)
0	$0
1	$40
2	$222
3	$495
4	$860
5	$1'250
6	$1'750
7	$2'388
8	$3'117
9	$3'937
10	$4'849

Suppose that there is no uncontrollable risk, and the fixed setup cost is 0. The price of the widget is $7'000. The cost of producing an extra widget is $6'500. Suppose that a=-200, and the company is setting the incentives intensitybat $390 per unit of widgets sold. Is the company making a profit? How much is the profit (or loss)?