At Gems in the Rough, a jewelry company, the engraving department is a bottleneck. The company is considering hiring an extra worker, whose salary will be $56,000 per year, to ease the problem. Using the extra worker, the company will be able to engrave 8,000 more units per year. The selling price per unit is $16. The cost per unit currently is $11.85 as shown:

What is the annual financial impact of hiring the extra worker for the bottleneck process?

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Direct material Direct labor Variable overhead Fixed overhead (primarily depreciation of equipment) Total $ 4.50 2.10 1.45 3.80 $11.85