Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85.

Direct materials $2.50

Direct Labour 1.10

Variable overhead 0.45

Fixed overhead (primarly depreciation of equitment) 1.80

Total $5.85

Requirements:1.Using the information provided, calculate the annual financial impact of hiring the extra worker(i.e., calculate the profit increase, or decrease, after hiring an additional worker).