Pharoah Seats manufactures swivel seats for customized vans. It currently manufactures 9,000 seats per year, which...

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Pharoah Seats manufactures swivel seats for customized vans. It currently manufactures 9,000 seats per year, which it sells for $500 per seat. It incurs variable costs of $190 per seat and fixed costs of $1,674,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $2,632,500, and its variable costs will decline to $110 per seat. Pharoah Seats manufactures swivel seats for customized vans. It currently manufactures 9,000 seats per year, which it sells for $500 per seat. It incurs variable costs of $190 per seat and fixed costs of $1,674,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $2,632,500, and its variable costs will decline to $110 per seat.