Bo Vonderweidt, the production manager for Sportway, had requested to have lunch with the company president. Vonderweidt wanted to put forward his suggestion to add a new product line. As they finished lunch. Meg Thomas, the company president, said, TII give your proposal some serious thought, Bo. I think you're right about the increasing demand for skateboards. What I'm not sure about is whether the skateboard line will be better for us than our tackle boxes. Those have been our bread and butter the past few years\". Vonderweidt responded with, \"Let me get together with one of the controller's people. We'll run a few numbers on this skateboard idea that I think will demonstrate the line's potential\": Sportway is a wholesale distributor supplying a wide range of moderately priced sports equipment to large chain stores. About 60 percent of Sportway's products are purchased from other companies while the remainder of the products are manufactured by Sportway. The company has a Plastics Department that is currently manufacturing molded fishing tackle boxes. Sportway is able to manufacture and sell 15,000 tackle boxes annually, making full use of its direct-abor capacity at avallable work stations. The selling price and costs associated with Sportway's tackle boxes are as follows: Because Sportway's sales manager believes the firm could sell 24,000 tackle boxes if it had sufficient manufacturing capacity, the company has looked into the possibility of purchasing the tackle boxes for distribution, Maple Products, a steady supplier of quality products, would be able to provide up to 17,500 tackle boxes per year at a price of \\( \\$ 76.00 \\) per box delivered to \\( \\$ p o r t w a y ' s ~ f a c i u t y \\). Because Sportway's sales manager believes the firm could sell 24,000 tackle boxes if it had sufficient manufacturing capacity, the company has looked into the possibility of purchasing the tackle boxes for distribution. Maple Products, a steady supplier of quality products, would be able to provide up to 17,500 tackle boxes per year at a price of \\( \\$ 76.00 \\) per box delivered to Sportway's facility Bo Vonderweidt, Sportway's production manager, has come to the conclusion that the company could make better use of its Plastics Department by manufacturing skateboards. Vonderweidt has a market study that indicates an expanding market for skateboards and a need for additional suppliers. Vonderweidt believes that Sportway could expect to sell 30,000 skateboards annually at a price of \\( \\$ 57 \\) per skateboard After his lunch with the company president, Vonderweidt worked out the following estimates with the assistant controlier. In the Plastics Department, Sportway uses direct-abor hours as the application base for manufacturing overhead. included in the manufacturing overhead for the current year is \\( \\$ 81,000 \\) of factorywide, fixed manufacturing overhead that has been ablocated to the Plastics Department. For each unit of product that Sportway sells, regardiess of whethef the produci has been purchased or is: manufactured by Sportway, there is an allocated S11 fixed overhead cost per unit for distibution that is included in the selling and administrative cost for all products. Total selling and administrative costs foc the purchased tackle boves would be \\( \\$ 20 \\) per unit. 1. In order to maximize the best use of Sportway's scarce resources, how many skateboards and tackle boxes should be manufactured, and how many tackle boxes should be purchased? 2. Calculate the improvement in Sportway's total contribution margin if it adopts the optimal strategy rather than continuing status quo. Complete this question by entering your answers in the tabs below. In order to maximize the best use of Sportway's scarce resources, how many skateboards and tackle boxes should be manufactured, and how many tackle boxes should be purchased? 1. In order to maximize the best use of Sportway's scarce resources, how many skateboards and tackle boxes shou manufactured, and how many tackle boxes should be purchased? 2. Calculate the improvement in Sportway's total contribution margin if it adopts the optimal strategy rather than cor status quo. Complete this question by entering your answers in the tabs below. Calculate the improvement in Sportway's total contribution margin if it adopts the optimal strategy rather than continuing the status quo