cice Assignment Gradebook nent Problem 4.43 (Part Level Submission) Metlock Co. manufactures three different models of colour plasma screens: PS1, PS2, and PS3. Data on the t Selling price Unit variable cost Annual production units Machine-hours per unit Avoidable fixed costs, if product line is eliminated PS1 $340 $226 5,130 6 $43,500 PS2 PS3 $480 $500 $312 $372 3,000 4,130 128 $42,000 $57,300 Metlock's production capacity is 89,968 machine-hours per year. Chiyo Co. has offered to purchase 4,720 units of a simpler version of PS3 for $445. Metlock estimates that thi and 7 machine hours per unit, but an additional fixed cost of $66,900 for a new assembly machine. The order it will not produce and sell PS3 to compete with Chiyo. (a) Your answer is correct. Compute the profitability index for each model and rank the order of priority for the models to be produced. (R LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instruct (b) Given the machine hour constraint, for which model should production be reduced and by how many units? Metlock should reduce by units If Metlock can purchase additional machine hours from another plant, how much would Metlock be willing to pay to meet its productie Metlock would be willing to pay By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempt olicy. I 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc