1. WoodlandFurniture is a small manufacturer of kitchen chairs with 5 workers. The cost oflabor is $15 per hour and workers work 40 hours in a week. The overhead cost isassumed to be 1.2 times the weekly total labor cost. Material cost is $10 perchair. Last year, on average, Woodland produced 250 chairs per week, and of theitems produced 16% were defective. The non-defective chairs were sold for $100each and the defective chairs were sold for an average of $40 per chair.Woodland recently installed a new assembly process, including a new sander andpolisher. With this new system, production has increased to 280 chairs per weekand the defective rate decreased to 10%. Assume the same sale prices fordefective and non-defective chairs.