Dime a Dozen Diamonds makes syntheticdiamonds by treating carbon. Each diamond

Dime a Dozen Diamonds makes syntheticdiamonds by treating carbon. Each diamond can be sold for $140. Thematerials cost for a standard diamond is $60. The fixed costsincurred each year for factory upkeep and administrative expensesare $214000. The machinery costs $2.1 million and is depreciatedstraight-line over 10 years to a salvage value ofzero.