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. Sales revenue Fixed costs Total Wisconsin $866,000 $433,000 Minnesota $279,000 North Dakota $154,000 Factory Administration. 222,000 113,000 54,000 74,000 46,000 22,000 55,000 6,000 Variable costs 293,000 133,000 89,000 71,000 Allocated home office costs Total 98,000 $687,000 44,000 $336,000 33,000 $198,000 21,000 $153,000 Operating profit $179,000 $ 97,000 $ 81,000 $ 1,000 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 Minnesota factory's current operations Sales revenue 51% Fixed costs.