PA2. LO 10.1 Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Syntech sells 100 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $160. The marketing manager is positive that they can sell more and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings? PA4. LO 10.2 Ken Owens Construction specializes in small additions and repairs. His normal charge is $400/day plus materials. Due to his physical condition, David, an elderly gentleman, needs a downstairs room converted to a bathroom. Ken has produced a bid for $5000 to complete the bathroom. He did not provide David with the details of the bid. However, they are shown here. Ken's Bid Detail Dollars Direct material $2,200 Direct labor 1,600 Variable overhead 200 Fixed overhead 600 Profit 400 $5,000 A. The town's social services has asked Ken if he could reduce his bid to $4000. Should Ken accept the counter offer? Direct material Direct labor Variable overhead Fixed overhead Profit Current Bid $2,200 1,600 200 600 New Bid $2,200 1,600 200 400 5,000 4,000 B. How much would his income be reduced? C. If the town's social services guaranteed him another job next month at his normal price, could he accept this job at $4000