value 2.85 points You have been asked to assist the management of Ironwood Corporation in arriving at certain decisions. Ironwood has its home office in Michigan and leasesfacry buildings in Wisconsin, Minnesota, N which produce the same product Ironwood's management provlded you a projection of operations for next year as follows: Dakota, all of TotalWisconsin MinnesotaNorth Dakota 5 162 00D 5alos revonuc Fixed costs 5883,000 $447.DDD 5274,000 223,000 5,000 44,000 292,000 135,00 45,000 $339,000 59,000 22.000 81,000 6,000 49.000 6,000 76,000 19,000 Faclory 2,000 Variable 00sts Alccated home office costs 100,000 $687,000 Tolal 198 Operating profit S 12 DDD The sales price per unit is $5. Due to the marginal results of operations of the factory in North Dakota, Ironwocd has decided to cease its operations and sell that factory's machinery and equipment by the end of this year. Iromwood expects that the proceeds from the sale of these assets would equal all termination costs. Ironwood, however, would like to continue serving most of its customers in that area if it is economically feasible and is considering one of the tollowing threse altematives: Expand the operations of the Minnesota factory by using space presently idle. This move would result in the following changes in that factory's operations: Increase uver Miiiesola factory's currenl operations 50% Sales revenue Fixed costS Factory Under this proposal, variable costs would be $2 per unit sold. Enter into along-tem contract with a compe itor that will serve that area's customers. This competitor would pay Ironwood a royalty of $0.8 per unit based on an estimate of 35,000 units being solo. Close the North Dakota faclory and not expand the operations of the Minnesota factory. Total horne office costs of S100,000 will remain the same under each situation. Required: To assist the management of Ironwood Corporation, complete the following schecule computing Ironwood's estimated operating profit from each of the following options