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Chrome Archivo Editar Ver Historial Favoritos Personas tpx? 0.21027111354348094 1523316572739 ezto. (--> ???No seguro TufSaut, Inc., solls a wide range of drums, bins, boxes, and

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Chrome Archivo Editar Ver Historial Favoritos Personas tpx? 0.21027111354348094 1523316572739 ezto. (--> ???No seguro TufSaut, Inc., solls a wide range of drums, bins, boxes, and other containers that are used in the chemical industry One of the company's products is a heavy-duty corrosion-resistant motal drum, called the WVD drum used to store toxic wastes. Production is constrained by the capacity of an automated welding machine that is used to make preaision welds. A total of 2,100 hours of wolding time is available annualy an the machine Because each drum requires 0.8 hours of welding machine time, annual production i limited to 2 625 drums. At present, the welding machine is used exclusively to make the WVD drums. The accounting department has provided She following financial data conceming the WWD drums 168.00 Selling price per drum Cost per drum $45.20 Diect materials Direct labor ($18 per hour) 4.50 3 85 16.10 69.65 Seling and administrative expense Margin per ddum $98.35 Management believes 3,125 WVD drums could be sold each year if the company had sufficient manufacturing capacity. As an aiternative to adding another welding machine, management has considered buying addtional drums from an outside supplier. Harcor kndustries, Inc., a supplier of quality products would be able to provide up to 1,900 WVD-type drums per year at a price of $130 per drum, which TufStuff wouid resell to its customers at its normal selling price after appropriate relabeling Mogan Flores, TulStudts production manager, has suggested that the company could make better use of the welding machine by manufacturing bike frames, which would require only 0.2 hours of welding machine tme per frame and yet sell for far more than the drums Megan believes that TurStuff could sell up to 3,600 bike frames per year to bike manufacturers at a price of $72 each. The accounting department has provided he folowing data conceming the proposed new product Bike Frames Selling price per frame Cost per frame Direct materials 72.00 $18.20 Diract labor ($18 per hour) Selling and administrative expense 22.50 6.45 7 20 64.35 Margin per frame s 7.65 516 pals

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