Marx Corporation has manufacturing plants in Boston and Chicago. Both plants produce the same product, Xoff, which sells for $20 per unit. Budgeted revenues and costs (in thousands) for the coming year are as follows:

Home office costs are fixed and are allocated to manufacturing plants on the basis of relative sales levels. Fixed regional promotional costs are discretionary advertising costs needed to obtain budgeted sales levels. Because of the budgeted operating loss, Marx is considering the possibility of ceasing operations at its Boston plant. If Marx ceases operations at its Boston plant, proceeds from the sale of plant assets will exceed their book value and exactly cover all termination costs. Fixed factory overhead costs of $50,000 would not be eliminated. Marx is considering the following three alternative plans:
Plan A. Expand Boston's operations from the budgeted 110,000 units of Xoff to a budgeted 170,000 units. It is believed that this can be accomplished by increasing Boston's fixed regional promotional expenditures by $120,000.
Plan B. Close the Boston plant and expand Chicago's operations from the current budgeted 200,000 units of Xoff to 310,000 units to fill Boston's budgeted production of 110,000 units. The Boston region will continue to incur promotional costs to sell the 110,000 units. All sales and costs will be budgeted through the Chicago plant.
Plan C. Close the Boston plant and enter into a long-term contract with a competitor to serve the Boston region's customers. This competitor will pay Marx a royalty of $2.50 per unit of Xoff sold. Marx will continue to incur fixed regional promotional costs to maintain sales of 110,000 units in the Boston region.
Required:
(1) Without considering the effects of implementing Plans A, B, and C, compute the number of units of Xoff required by the Boston plant to cover its fixed factory overhead and fixed regional promotion costs.
(2) Prepare a schedule showing, for each plant and in total, Marx's budgeted contribution margin and operating income from implementing each of the three plans.

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TotalBoston Chicago $6,200 %2200 S4,000 Sales Variable factory costs: $1,550 1,660 1,140 1,600 200 310 550 660 440 700 100 110 $1,000 1,000 700 Direct labor. Variable factory overhead. Fixed factory overhead 900 100 Allocated home office cost Total costs. Operating income (loss) 200 $6460 2560 3900 $2,560 $3,900 $ (260) (360) 100