Sporty Italia produces two turbo engine vehicles that it sells exclusively to two car dealerships. The Milan dealership is contracted to receive 10 Monza vehicles per year. The Rome dealership is contracted to receive 12 Monte Carlo vehicles per year. Sporty Italia has estimated that the costs for producing the Monza and Monte Carlo vehicles, for the current financial year, are as follows: Monza Monte Carlo Direct Labour $50,000 $60,000 Direct Material $70,000 $30,000 Direct Labour hours 15,000 5,000 Machine Hours 5,000 7,000 Production runs 201 10 Number of moves 60 30 Total overhead costs for the current financial year to support the Milan and Rome dealerships are as follows: Customer Service costs (Driver: number of production runs) Delivery costs (Driver: number of moves} Marketing (Driver: direct labour hours) Testing (Driver: machine hours) TOTAL OVERHEAD $270,000 $150,000 $400,000 $300,000 $1,120,000 If the Milan dealership buys 5 cars at $95,000 each, and the remaining 5 cars for a lump sum of $500,000, how much profit/loss, in total, does Sporty Italia make through the contract wi Milan Dealership? a. $187,500