Assuming 1991 prices, sale volume and material costs are unchanged, what do you expect the overhead per direct labor dollar to be if you drop the Manifold product line? Why?

Exhibit 1:

	MODEL YEAR
	1987	1988	1989	1990
Sales
Fuel Tanks	$70,278	$75,196	$79,816	$83,535
Manifolds	79,459	84,776	89,323	93,120
Doors	41,845	45,174	47,199	49,887
Muffler/Exhausts	62,986	66,266	0	0
Oil Pans	75,586	79,658	0	0
Total	$330,154	$351,071	$216,338	$226,542
Direct Material
Fuel Tanks	$15,125	$15,756	$16,312	$16,996
Manifolds	31,696	33,016	34,392	35,725
Doors	14,886	15,506	16,252	16,825
Muffler/Exhausts	28,440	29,525	0	0
Oil Pans	32,218	33,560	0	0
Total	$122,365	$127,363	$66,956	$69,546
Direct Labor
Fuel Tanks	$4,169	$4,238	$4,415	$4,599
Manifolds	5,886	6,027	6,278	6,540
Doors	2,621	2,731	2,844	2,963
Muffler/Exhausts	5,635	5,766	0	0
Oil Pans	6,371	6,532	0	0
Total	$24,682	$25,294	$13,537	$14,102
Overhead by Account Number
1000	$7,713	$7,806	$5,572	$5,679
1500	6,743	6,824	5,883	5,928
2000	3,642	3,794	2,031	2,115
3000	2,428	2,529	1,354	1,410
4000	8,817	8,888	7,360	7,433
5000	24,181	24,460	20,063	20,274
8000	5,964	5,946	3,744	3,744
9000	6,708	6,771	5,948	5,987
11000	5,089	5,011	3,150	3,030
12000	26,936	28,077	15,027	15,683
14000	9,733	9,784	8,025	8,110
Total	$107,954	$109,890	$78,157	$79,393
Factory Profit	$75,153	$88,524	$57,688	$63,501

Exhibit 2: Overhead Account Number

1000	Wages and benefits for nonskilled hourly personnel such as janitors and truck drivers.
1500	All plant salaried personnel expense, including benefits, except industrial engineers included in account number 11000 below.
2000	Production supplies such as gloves, safety goggles, and packing material.
3000	Small wearing tools such as grinding wheels, hammers, and screwdrivers.
4000	All purchased utilities, including coal and compressed gas.
5000	Wages for nonproduction employees with specialized skill classifications used for plant maintenance and rearrangement. The benefits associated with these wages are in class 14000 below.
8000	Depreciation on a straight-line basis and property taxes.
9000	Various relatively constant personnel-related expenses, including items such as training, travel, and union representation.
11000	Project expense for one-time setup and some rearrangement of new equipment and machinery.
12000	Benefits and overtime premium for production hourly workers, including COLA, state unemployment, and pension. Wages are in direct labor.
14000	Benefits for skilled hourly workers similar to those for production workers. Wages are in account 5000 above.