You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Ironwood has its home office in Michigan and leases factory bulldings in Wisconsin, Minnesota, and North Dakota, all of which produce the same product. Ironwood's management provided you with a projection of operations for next year, as follows. The soles price per unit is $5 . Due to the marginal results of operations of the factory in North Dakoto, Iromwood has decided to cease its operations and sell that factory's machinery and equipment by the end of this year. Ironwood expects that the proceeds from the sale of these assets would equol oll termination costs. Ironwood, howevet, would like to continue serving most of its customers in that area if it is economically feasible ond is considering one of the following three alternatives: - Expand the operations of the Minnesota factory by using space presently ldie. This move would result in the following changes in that tactory's operations Under this proposal, variable costs would be $2 per unit sold. - Enter into a fong-term contract with a competitor that will serve that area's customers. This competitor would pay lronwood a royalty 4 of $1.1 per unit based on an estimate of 27,000 units being sold. - Close the North Dakota factory and not expond the operations of the Minnesota factory. Total home office costs of $101 , 000 will remain the same under each situation. Required: To assist the management of fronwood Corporation, complete the following schedule computing Ironwood's estimated operating profit from each of the following options: a. Expansion of the Minnesota factory, b. Negotiation of the long term contract on a royalty basis: c. Shutdown of the North Dakota operations with no expansion at other locations: Expansion of the Minnesota factory