$1.$ Product Bead is being produced on both first and second shifts by company Baldwin. Compare the incremental cost of purchasing an additional unit of first shift capacity with the additional labor costs of producing that unit on second shift. It costs $$3\mathrm{.}62/$unit in labor to produce Bead on first shift, second shift labor costs are $50\%$ higher. At the current automation level of $8\mathrm{.}0$ it costs $$38\mathrm{.}00/$unit of first shift capacity. Assume the only fixed costs of purchasing first shift capacity will be Depreciation on a $15$ year straight line. Ignore material costs and SG&A expenses which are the same on both shifts. Which of the following statements are true?