Compton believed that producing the X50 component at a lower cost might provide Compton the opportunity to start a new company. OEC's purchasing agent assured Compton that OEC would buy X50s from Compton if the price were $3.40 which was approximately 10% below OEC's current cost of $3.78 per unit. Working at home, Compton experimented with the new assembly method. This experimentation seemed successful, so Compton prepared estimates for large-scale X50 production. Compton determined the following: One workstation would be needed for each assembly worker. Each workstation costs $1,200, which excludes assembly costs of $300 each. Chris plans on capitalizing (ie. recording them as an asset) the purchase and assembly of the workstations. Assembly workers were readily available, on either a full-time or a part-time basis, at a wage of $18.00 per hour. Benefit costs would increase labor costs by 25%. Compton estimated that, on average (including breaks), a worker could assemble, test, and pack fifteen X50s per hour. Purchased components for the X50 would cost $1.25 per unit. Shipping materials and delivery costs would cost $0.05 per unit. Suitable space was available for assembly operations, and renting this space would cost $2,000 per month. Compton would receive a salary