(TCO 5) Stevens Medical Equipment Company manufactureshospital beds. Its most po

(TCO 5) Stevens Medical Equipment Company manufactureshospital beds. Its most popular model Deluxe sells for $5000. Ithas variable costs totaling $2800 and fixed costs of $1000 perunit based on an average production run of 5000 units. Itnormally has four production runs a year with $600000 in setupcosts each time. Plant capacity can handle up to six runs a yearfor a total of 30000 beds.