Oak Fine Furnishings manufactures a wide range of home furnishings. One of their
products is an oak headboard. The company currently sells 4,000 headboards at an
average price of $100 per unit. To manufacture the headboards, the variable costs are
$55 per unit and the total fixed costs assigned to the oak headboard are $150,000. If the
sale of headboards increases by 50% and all else remains constant, this would result in