. If demand for 2020 is instead 3,000 units should the company pay to increase their capacity?Why?Please explain your calculations and reference to the chart in Figure 1.Assume units are sold at the normal price.

Hint:If you expand capacity, you will have to pay additional fixed costs of $25,000.Remember that fixed costs are fixed within the relevant range.If you expand capacity then you are outside this range.If you expand capacity then you can make revenue on 1,000 additional units and would pay variable costs on 1,000 additional units.Please consider the incremental profit or loss of expanding capacity.If the incremental profit of expanding capacity is positive then you should do so.