Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $56,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,100 more units per year. Currently, the selling price per unit is $26. 00 and the cost per unit is $7. 80. Direct materials $3. 50 Direct labor 1. 10 Variable overhead 0. 40 Fixed overhead (primarily depreciation of equipment) 2. 80 Total $7. 80 Using the information provided, calculate the annual financial impact of hiring the extra worker. Profit $fill in the blank 1
