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 buildings 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: Total 5885,000 Wisconsin Minnesota Horth Dakota 5460.000 $276.000 $169,000 Sales revenue Fixed costs Factory Anistration Variable costs Allocated home office costs Total Operating profit 214,000 66,000 295,000 97,000 $623000 3212,000 115,000 37,000 135,000 43,000 $31.000 $109,000 51,000 22.000 36,000 35,000 $196,000 $32,000 43,000 7.000 74,000 19.000 $100,000 $ 21,000 The sales price per unit is $5 Due to the marginal results of operations of the factory in North Dakota, Ironwood 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 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 following three alternatives 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 over mest factory current operation Sales Fixed cost Factory Administration 49% Under this proposal, valable costs would be $2 per unit sold Enter into a long term contract with a competitor that will serve that area's customers. This competitor would pay Ironwood a royalty of St per unit based on an estimate of 27000 units being sold . Close the North Dakota factory and not expand the operations of the Minnesota factory Total home office costs of $97000 will remain the same under each situation Required: To sist the management of Ironwood Corporation, complete the following schedule computing Ironwood's estimated operating profit from each of the following options . Expansion of the Minnesota factory b. Negotiation of the long term contract on a royally basis c. Shutdown of the North Dakota operations with no expansion at other locations