n the chemica nuly One of the company\'s products s a heavy-duly corosion-esstan

Question

n the chemica nuly One of the company's products s a heavy-duly corosion-esstant etal dum nake precson wels Atotal of 2,100 hours of weidng esclusively to malke the druns The acounting department hus prowded te wing tnancial dats conceming the wo dru Seling and adninistralive pense Managesent beeves 3,125 WVD dus couid be soid each year it the c onsdered buying addtionas drums rom an outsioe suppler arcor industres a Megan Feres Ts producton manager has accounting departnent has prowced theingoa conceming the progonedproact woukt be abie to provide .,100 baeh to 1 800 wwDtvpe drums per yewr at a price o $120 er hame and yet ses no tar more than the drus egan beleves thatl Turanet cou ae ofThe ?etlng nactare ty Ottachig bke naneswhchwid requrr ?02nors or pear to bne turers ar a 13 50 BA 5 6 7 8 9 0 ( BACK 7 4 ENTER ? R.

Explanation / Answer

1. Yes.

3.a.

Working:

3.b.

Working:

3.c.

Working:

3.d.

Working:

Contribution margin a Purchase of WVD drum $57.91 per unit b Manufacture of WVD drum $129.72 per unit c Manufacture of Bike Frames $52.30 per unit

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