The Cloud Burst Sprinkler Company of Benicia, California has been manufacturing and selling a water efficient sprinkler exclusively to Home Depot for the last two years. Although there is not a binding contract that gives Home Depot exclusive rights to buy and stock the sprinkler in their network of locations, Cloud Burst has placed a great deal of importance on keeping Home Depot locations across the country and Canada fully stocked with their water efficient sprinkler.

ACE Hardware has approached Cloudburst indicating they would like to stock the water efficient sprinkler in their $4,192$ stores across the United States. The initial proposal submitted by ACE is to purchase $50,304$ sprinklers which will result in a dozen sprinklers stocked in every store.

The proposal received from ACE will NOT affect fixed costs, however, ACE has requested a special onetime quantity wholesale discount price of $$5\mathrm{.}80$ per sprinkler

Cloud Burst Sprinkler Company achieved the following results operating at $47\%$ capacity and selling $122,400$ sprinklers exclusively to Home Depot:

$\backslash$table$[[$Sales to Home Depot,$$826,200$