Under this proposal, variable costs would be $2 per unit sold. . Enter into a long-term contract with a competitor that will serve that area's customers. This competitor would pay Ironwood a royalty of $0.9 per unit based on an estimate of 26,000 units being sold. - Close the North Dakota factory and not expand the operations of the Minnesota factory. Total home office costs of $101,000 will remain the same under each situation. Required: To assist the management of Ironwood Corporation, complete the following schedule computing Ironwood's estimated operating profit from each of the following options: a. Expansion of the Minnesota factory