A small business owner sells a widget for $35/unit while she buys the unit from a supplier at $23/unit and has a current fixed cost of $5100/month In year 2 of her business, she is deciding whether she should get abank loan to lease the machine to manufacture it in-house. Her new projected fixed cost with the leasing of the machine, which includes shipping, installation and validation will be $10000 per month. The machine has a monthly maximum per unit capacity of 2200 units. She has calculated the in-house variable manufacturing cost will be $15/unit 1. If she is forecasting 1500 units per month, she will be profitable? 2. If profitable, then what is the projected monthly profit.

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