The sales price per unit is $250 Looking at the financial statement, the results in the Montana factory seem troubling. WMM management has decided, as a result, to sell that factory's machinery and equipment and stop manufacturing by the end of this year. WMM expects that the proceeds from the sale of these assets would equal ail termination costs. WMM. however, would like to continue serving most of its customers in that area If it is economically feasible and is considering one of the following three alternatives: - Expand the opecations of the Utab factory by using space presenty idle. This move would tesult in the following changes in that factory's operations: Increase over Utah's factory's cucrent operations Negotiation of the long-term contract on a royalty basis. Note: Enter your answers in thousands. (i.e., 5,400,000 should be entered as 5,400). Under this proposal, variable costs would be $100 per unit sold. - Enter into a long-term contract with a competitor that wil serve that area's customers. This competitor would pay WMM a royalify of $60 per unit based on an estimate of 30,000 units being sold. - Close the Montana factory and not expand the operations of the Utah factory Total allocated corporate costs of $5,000,000 will remain the same if the Utah factory is expanded (the first alternative above) If a competitor is used to serve the Montana market (the second alternative above), 65 percent of the corporate cost allocated to the Montana factory will be saved. If the Montana factory is closed and the Utah factory's operations are not expanded (the third alternative above), 80 percent of the corporate cost allocated to the Montana factory will be saved Required: Required: To assist the management of WMM, prepare a schedule computing WMM's estimated operating profit from the following option a. Expansion of the Utah factory. b. Negotiation of the long term contract on a royalty bojis c. Shutdown of the Montana operations with no expansion at other locations. Shutdown of the Montana operations with no expansion at other locations. Note: Enter your answers in thousands. (i.e., 5,400,000 should be entered as 5,400 ). WEXFORD MANUFACTURING and MINING Computation of Estimated Profit from Operations after Expansion of Utah Factory ($000) Required B