The following information is available for Fairmount Industries from year 1 operations: Sales revenue (54,000 units) $ 1,665,000 Manufacturing costs Materials $ 249,000 Variable cash costs 554,000 Fixed cash costs 336,000 Depreciation (fixed) 169,000 Marketing and administrative costs Marketing (variable, cash) 180,000 Marketing depreciation 50,000 Administrative (fixed, cash) 171,000 Administrative depreciation 19,500 Total costs $ 1,728,500 Operating profits (losses) $ (63,500) All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $31,000 will be fully depreciated by the end of year 1 and will not be replaced with new equipment because it is still operating to specification. Sales volume is expected to d